Businesses feeling pinch at the pumps

Michelle Nic Phaidin

Reporter:

Michelle Nic Phaidin

The rising price of fuel will force businesses in the north west out of business if the Government does not intervene quickly, according to Gaoth Dobhair business man, Martin Boyle.

The rising price of fuel will force businesses in the north west out of business if the Government does not intervene quickly, according to Gaoth Dobhair business man, Martin Boyle.

The owner of Martin Boyle Haulage Ltd has said that at present many of the people in his line of business are feeling the pressure as the mounting cost of fuel continues to rise.

Yesterday morning, the Managing Director of Petrel Resources, David Horgan said that the latest price hike on crude oil could increase the price of petrol here by up to 10 cents in the coming weeks.

Speaking on RTÉ’s Morning Ireland, he said: “What we are seeing at the petrol pumps, is what we have seen in the financial markets in the last couple of weeks. Some Irish retailers turn over their stock very quickly and others more slowly and that’s why if you are driving around rural Ireland you might find as much of a difference as 10 cents a litre just by picking your retailer intelligently. The increase in the price of crude oil would equate to a 6 per cent increase of what we pay or 10 cent a litre.”

Martin Boyle, who employs 25 people at his Gaoth Dobhair premises, pays €150,000 a month on diesel in order to keep his 20 lorries on the road.

“It is definitely putting serious pressure on us but what can we do? In our business we just have to keep buying it. Everyone is struggling. I don’t know what the Government is thinking about at all. I employ 25 people here and this matter will just force people out of business. The diesel is getting so dear that no one can afford to buy it. It is at the point now where it is two cents dearer than when it was at its highest in May. Something has to be done. We are under pressure as we are,” he said.

James Anthony McGinley of John McGinley coaches spends €15,000 a week on diesel. The well-reputed coach firm travels from its base in Machaire Rabhartaigh to Dublin on a daily basis. “These prices will doubtlessly put pressure on businesses in the north west. It will affect everyone. Oil is 30 per cent dearer than what it was at this time last year. During one daily run, it costs us €400 in oil. People simply wouldn’t realise that. Car drivers feel the pinch at the pumps but we feel it when we get the bills at the end of every month. The price increases just keep shocking you and it looks like it is set to get worse. Perhaps a few years ago the Government could remedy the situation but now they are looking to take money from every corner they can get,” he said.