Oxford alarmed by rising fuel prices amid Iran War crisis

Fuel prices across the UK have seen a sharp increase since the US and Israel launched their initial strikes at Iran on February 28.

This is largely due to the closure of the Strait of Hormuz, an important shipping route to the south of Iran.

Data from the RAC suggests the average price of diesel in the UK has gone up by 25.5 per cent from 141.60p per litre on February 26 to 177.68p per litre on March 27.

Meanwhile unleaded petrol has risen by 13.7 per cent from 132.05p per litre on February 26 to 150.11p per litre on March 27.

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All prices include VAT.

Charities, emergency services and businesses across Oxfordshire have been impacted.

Loose Canon Brewery in Abingdon delivers beer five days a week, consistently to 90 pubs in the local area although often that number is higher.

“There’s been quite a dramatic impact in that way,” said Anneli Baxter, general manager, commenting on direct fuel costs.

She added: “Also, customers who visit our brewery shop. They are starting to consider the cost of driving to the brewery to collect beer.”

President Donald Trump (Image: AP Photo/Julia Demaree Nikhinson)

Ms Baxter further stated that the public – squeezed by the rising cost of living including fuel costs – are weighing up whether they are able to afford luxuries such as beer at the pubs they deliver to.

Dave Richardson, a spokesman for the Oxford branch of CAMRA (Campaign for Real Ale), echoed Ms Baxter’s comments.

He said: “The breweries deliver the beer to the pubs on the lorries – there’s no other way of doing it, so they are having to face that additional cost.”

The Oxford Food Hub, which has vans out six days a week delivering to around 250 organisations, said that the increase in fuel costs is making it its work harder.

Steve Hamon, CEO of the charity, said: “We still have two diesel vans, and since the end of February, we’ve noticed an increase of 31.63 per cent in fuel costs. 

Volunteers and workers at the Oxford Food Hub (Image: The Oxford Food Hub)

“As a smaller charity, every penny counts. Any rise in fuel spending makes it harder for us to continue our regular operations of saving and redistributing surplus food across the county.” 

Small businesses are increasingly concerned by fuel costs, with several saying it is adding to an already pressured landscape.

Robin Holmes-Smith, owner of The Granary delicatessen in Watlington, which has offered a delivery service said the true impact is yet to be felt.

He said: “The difficulty will be in a few weeks’ time when prices go up. If the distribution charges go up, then prices will go up.”

Mr Holmes-Smith claimed he was “cautious” when looking ahead but that his main concern was the rise in minimum wage.

Meanwhile, Ryan Dawson, owner of Oxford Pantry Hampers called it an “extra financial strain along with the other costs of being a small business”.

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If the order is close to his south Oxfordshire base, he will try and deliver the gourmet food or artisan gift hamper himself.

As such the rise in petrol costs is “eating away” at his profits.

The ambulance service for Oxfordshire said it expected to see its costs rise, despite operating a “mixed fuel strategy”.

Loose Cannon Brewery in Abingdon (Image: Loose Cannon Brewery)

A spokesperson for the South Central Ambulance Service NHS Foundation Trust said: “Ultimately those rises will increase the trust’s costs given the large number of vehicles we use to provide our services.”

From a private driver perspective, a leading member of the Motoring Action for Oxford group said the situation was causing “much frustration and worry”.

Robbo Leigh explained that private motorists have no way of absorbing or passing on increases in costs, while businesses relying on petrol will be looking to absorb as much as possible.

This includes independent petrol stations with Martin Prew, owner of Milton Service Station, saying his margins on fuel had effectively halved.

Milton Service Station in Oxfordshire (Image: Google Maps)

The company, which was founded in 1965, also sells cars and is a workshop, and Mr Prew has said these areas are currently “subsidising the fuel business”.

Saj Malik, a city councillor and taxi driver, said that he was noticing a downturn in trade as the rise in fuel costs made everybody “extra cautious”.

He said: “Oxford is a student city; we have many quarters that are very deprived. Our prices remain the same; we cannot pass on anything to customers as we have all struggled.”

Mr Malik has called on the government to take action including by reducing fuel duty, a tax levied on petrol, diesel and other road fuels.

He is not the only one keen on support amid the rise in costs.

Independent Oxford councillor Saj Malik (Image: Oxford City Council)

Ms Baxter of Loose Cannon Brewery said: “A reduction in VAT at pump prices would go a long way.”

Mr Leigh said: “The one thing that always arises in conversation is how slow our government in the UK is acting on this issue whereas a handful of countries have already reduced their fuel duties and VAT.”

Mr Prew also called for temporary reductions highlighting that the increase in prices would see a rise in government revenue from VAT which is set at 20 per cent.

Sportif Suzuki in Long Hanborough, Oxfordshire (Image: Google Maps)

However, the government has rejected this view, suggesting that as energy prices rise, people cut back on other spending that would usually be subject to VAT.

A government spokesperson said: “Millions of motorists filled up their cars and travelled over the Easter weekend.

“Our fuel system is robust and continues to work well.”

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While committing to keep the taxes under close review, the government has pointed to its extension of the 5p fuel duty cut from this month to September.

On Wednesday April 8, US President Donald Trump and the Iranian leadership announced a two-week ceasefire, with the theocracy agreeing to allow shipping through the Strait of Hormuz.

Despite this, uncertainty remains about the safety of ships travelling through the Strait.