Tensions in the Middle East have seen a sharp increase in the price of crude oil, and although the Government has agreed to review its proposed two pence fuel tax rise in September, haulage firms, taxi companies and small businesses are worried about their futures.

Mark Fahy, proprietor of M and K Fahy Enterprises, based in King Street, Middlewich, said: "It's a vicious circle. If the fuel prices keep going up, there's only so long that I'm going to be able to absorb the cost before I have to put my customers' prices up."

He added: "The country relies on transport yet the Government doesn't seem to have any sympathy for hauliers.

"They're killing the industry in this country with these price increases. I'm taxed for my fuel, for the road, for my vehicle and when I work abroad. I'm staring to wonder whether it's worth it."

Chris Jones, of Sid's Taxis, Brooks Lane, Middlewich, echoed Mr Fahys' comments.

He said: "We do school runs which have to be kept at a fixed price for three years. We can only swallow so much in costs before we have to start putting our non-school runs up.

"Drivers also want wage increases and we have to keep our fleet updated to make sure it is up to standard. We've just had to cancel an order for a new car because of cost increases."

Matthew Gurney, of Northwich-based firm First Fruits Ltd, in Leicester Street said the increases were worrying.

He said: "At the minute, we're only paying an extra £5 per week on our fuel bill so we can cover that. But obviously we can only carry it for so long before we have to pass it on to our customers."

However, Ian Davenport, owner of the Northwich florist shops Tomlinson, in Applemarket Street and Haslehurst, in Church Road, was more optimistic.

He said: "At this moment in time we just have to absorb the costs.

"Come September we'll have to review our prices but I don't think an increase will put people off. This business has been established for 54 years. We may lose one in 20 people who might object but there is a lot to be said for customer loyalty."

gsproston@guardiangrp.co.uk

Firms feel the pain over high fuel cost