Fuel prices soar as West of England businesses warn of rising costs

Businesses across the West of England are warning that rising fuel prices are putting increasing pressure on their profits, with petrol prices approaching £2 per litre in some areas.

The sharp increase in fuel costs is creating difficulties for businesses that rely heavily on vehicles, including taxi operators, petrol stations and road service companies.

Global oil prices have risen significantly amid disruption around key shipping routes, including the Strait of Hormuz, as conflict in the Middle East continues.

The global oil price has risen above $108 (£80) per barrel, compared with around $70 (£52) in June 2026, representing an increase of roughly 50%.

Higher wholesale fuel prices are creating a difficult choice for retailers, who must decide whether to pass the additional costs on to customers or reduce their own profit margins.

Fuel prices also vary considerably between different parts of the region, with rural areas often facing higher prices because of transport costs, lower sales volumes and reduced competition.

In Bristol, the average price of petrol is currently around £1.70 per litre, while some petrol stations in Wiltshire are charging considerably more.

Some stations in Hullavington have been reported to be charging as much as £2.40 per litre, highlighting the significant differences motorists can face depending on where they fill up.

Elsewhere, a petrol station in Upton Noble, Somerset, has increased its petrol price to £1.86 per litre, while another station near Whaddon is charging £1.96 per litre.

For businesses that depend on fuel every day, the increases are having a direct impact on operating costs and profit margins.

Pieter-Jon Allis, owner of Stroud Taxi in Gloucestershire, described the situation as a "complete nightmare", saying fuel was his company's main day-to-day business cost.

He said customers were increasingly comparing prices with other services, including Uber, creating pressure on taxi operators to keep fares low despite significantly higher running costs.

Susannah Moffat, who runs Ledbury Road Services in Tewkesbury, Gloucestershire, said the business was trying to avoid passing the full increase on to customers because of concerns about losing trade.

She said the company had been repeatedly cutting its profit margin to keep price increases as low as possible, while relying more heavily on income from shop sales.

With fuel prices continuing to rise, businesses across the region face uncertainty over how long they can absorb higher costs without increasing prices for customers.