North West small firms passing on fuel costs, says survey

Jul 4 2008 by Tony McDonough, LDP Business

A NEW study reveals that 40% of small businesses in the North West are already passing on increased fuel costs to their customers.

As the price of a barrel oil is now well in excess of $US140, small companies in the region are feeling the pinch, according to a survey carried out by Liverpool-based Bibby Financial Services.

Of the businesses surveyed in the region, 80%of owners and managers said they were feeling the effect of rising fuel costs on their business, with 20 per cent looking for ways to diversify and grow their business in order to cope with higher prices.

While a almost a quarter (22%) are already championing cost reductions by cutting how much time they spend on the road, one in six are under pressure from employees to increase fuel allowances (15%).

A North/South divide is also evident with a massive 83% of owners/managers in the north of England citing the rising fuel costs as the key transport issue affecting their business, 10% more than business in the south (73%).

Region by region, it is those businesses in the more rural area of East Anglia that are feeling the greatest affect of the fuel crisis (96%), and industrial areas such as the East Midlands (90%) and the North West (89%).