Welsh SMEs shelling out an extra £1m a month for petrol

A new study that looked at fuel costs for SMEs in Wales has shown that prices at the pumps cost them an extra £1m in just one month, according to Bibby Financial Services. In last month’s budget, Chancellor George Osborne announced that the 3p a litre increase will go ahead as predicted in August.

The average price of petrol has reached a record level of £1.40 per litre, and Bibby Financial Services study showed that this equated to an extra £1m a month that Welsh SME’s were have to fork out. On the whole, SME’s across the UK have seen their fuel costs rise by a massive £17.5m a month, which takes the total that it costs businesses for fuel to over £2bn.

The average consumption of fuel per person per month in Welsh SMEs is now standing at £451, compared to £370 in 2010. It was the feedback from Bibby Financial Services 4000 clients in the UK that prompted them to carry out the research, after they told them of the increasing financial pressure they were under.

Terry Wolfendale is a spokesperson for Bibby Financial Services in Wales, and he has said that it was a real concern to them that businesses in Wales were having to shoulder these extra costs to run their vehicles, whilst at the same time not have access to the funding they need through the traditional routes as this would help them to offset the costs and also to manage their cash flows more effectively.