Tourism Pays Price As Cost of Fuel Rockets
Posted on: Friday, 2 May 2008, 00:00 CDT
By Peter Harrison
Tourism is paying the price as fuel hits the pounds5 a gallon mark. The shocking revelation came as the Westcountry saw a litre of unleaded top 110p.
Late spring usually marks the start of the holiday season, but Tim Jones, chairman of Devon and Cornwall Business Council, said tourism was already suffering.
"We are hearing from small businesses that this is suppressing competition. It's unbelievable how badly timed it is as we are right in the middle of a credit crunch. But it is also the start of the holiday season with people wanting to make last- minute bookings," he said. "There is already a significant drop in the number of bookings being taken.
"We have no choice but to use our cars in the Westcountry. This is a long-term issue which I fear we are going to have to learn to live with."
Fuel prices across the region have increased massively over recent weeks and now petrol station forecourts display prices ranging from 106.9p to 114.9p per litre for unleaded and 114.9p to 125.9p per litre of diesel.
In Exeter unleaded is up to 113.9p and diesel 125.9p; in Plymouth it is slightly cheaper at 110.9p and 124.9p respectively; Taunton is 114.9p for unleaded and 124.9p for diesel; in Truro it is 111.9p for unleaded and 122.9p for diesel. Last year the average petrol price was 93.98p a litre, with diesel 95.81p.
The AA says it now costs pounds8.12 more to fill a 50-litre petrol tank than it did a year ago. And for a two-car family that means an increased fuel bill of pounds34.80 per month - which across the UK means an extra pounds10.8 million a day on petrol.
AA president Edmund King said: "With the bank holiday and summer motoring looming many drivers that get by on a tank of fuel for a couple of weeks will suffer a reality check when they drive down to the seaside or an amusement park and have to fill up along the way."
Haulage companies have no choice but to pay the increasing prices. Andy Walker, managing director of Gregory Distribution, based in North Tawton, said: "In September '07 to March '08 we spent pounds1.7 million more than the previous year on fuel alone. So far since January this year we have spent pounds748,000 in extra costs and that will have to be absorbed in some way."
Farmers are continuing to feel the pinch. Ian Johnson, South West spokesman for the National Farmers' Union, said: "The NFU is naturally very concerned and we have called on the Government not merely to postpone a planned duty increase, but to scrap it altogether."
So bad is the problem that this week Devon and Cornwall police put out a warning after thefts of domestic heating oil and red diesel from properties and farms around Torpoint and Camelford.
A Treasury spokesman said: "We will continue to monitor oil market developments and take all relevant economic, social and environmental factors into account in future decisions. The condition of the oil market is just one factor."
(c) 2008 Western Morning News, The Plymouth (UK). Provided by ProQuest Information and Learning. All rights Reserved.
Source: Western Morning News, The Plymouth (UK)
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