Organisations across the North East are reporting severe financial strain as diesel prices have reached unprecedented levels. The RAC motoring group said the average price of diesel has topped £2 a litre in the UK for the first time. The RAC attributed the surge to disruption from the Iran war, which has severely damaged production and transportation of wholesale oil and refined products from the region over the past seven months, pushing prices up worldwide.
Cancer charity Daft as a Brush said it now spends £15,000 a month on diesel, an increase of £5,000 compared to the previous year. The Newcastle-based organisation runs 600,000 miles annually across its 30 vans to transport cancer patients to hospital appointments. Head of income generation Scott Jobson said the charity had planned to replace its diesel fleet with electric vehicles but could no longer afford to do so because money raised from donations was being consumed by fuel costs.
Teesside Minibus Hire in Middlesbrough faces similar pressures. Director Billy Johnson said the business often signs multi-year contracts based on fuel costs at the time of agreement. He said the company is passing increased costs to customers, but as those customers struggle with broader inflation, they are increasingly turning to cheaper unlicensed hire services instead. Johnson said if fuel prices did not drop, the business would probably not survive long term.
In May, the government extended a fuel duty freeze until the end of the year, capping tax at 5p per litre for petrol and diesel. The government has said the country has a diverse and resilient fuel supply and there is no cause for concern about potential shortages.