The current conflict in the Middle East has led to a surge in fuel prices, affecting petrol stations and customers alike. Goran Raven, owner of a petrol station in Romford, says his business is facing one of its most challenging periods.
According to the RAC, petrol has reached an 18-month high, and diesel has seen the biggest increases in over two years. Raven's petrol station, which has been in the family for four generations, is struggling to cope with the fluctuating prices and angry customers.
Raven explains that smaller businesses like his have no choice but to pay the daily spot prices, which can lead to significant price shocks. The storage capacity at his petrol station is limited, holding only just over a day's worth of fuel, making it difficult to absorb price rises.
Impact on Small Businesses
Raven's business is working on a 4% profit margin, which he says is hardly profiteering. He hopes the situation in the Middle East will settle soon, and when it does, he will adjust his prices straight away.
The Petrol Retailers Association (PRA) has criticized the government's "inflammatory language," which it says could encourage poor behavior. Energy Secretary Ed Miliband has stated that authorities are monitoring prices for price gouging.
Government Response
The Competition and Markets Authority is set to monitor prices closely and may report its findings in April. A new fuel finder app, which covers over 90% of fuel retailers, aims to ensure a more competitive market for fuel.
As reported by BBC News NI, the conflict in the Middle East is having a significant impact on fuel prices worldwide, with countries feeling the effects of the energy price shock.
