Fuel prices: Norfolk coach company says rise will cost £650k

Diesel was £2 per litre at a fuel station in Long Stratton in Norfolk on Thursday

As fuel prices continue to rise due to Russia's invasion of Ukraine affecting the cost of oil worldwide, the BBC has spoken to two businesses about how they are dealing with soaring costs.

'Customers will face higher costs'

Charles Sanders says there is no other option but to increase prices

Charles Sanders, of Sanders Coaches in Holt, Norfolk, says if fuel prices stay at the rates they are now, it will cost the business an additional £650,000 per year.

He said the company, which has been operating for nearly 50 years, will have to work out how to deal with the extra costs.

Mr Sanders says the most recent fuel delivery cost £2.10 per litre, which is a 50% increase on the price two weeks ago.

"Every customer we've got is going to have to face a higher cost, otherwise we won't be able to operate - simple as that," he says.

Mr Sanders says the business may have to add on a surcharge based on fuel costs at the time of travel.

"It may come down, it may continue to rise," he says.

"We just don't know at the moment, it's so volatile."

'We could lose business'

Matt Hammond says he is worried about costs continuing to rise

Matt Hammond, sales manager at Savoy Catering Supplies in Great Yarmouth, says the business is currently "absorbing" the additional fuel costs.

"But we may have to put some prices up or maybe put on a fuel surcharge," he says.

"We need to have a discussion about which way we would do it.

"Whether we do it across all our customers or do it on distance from our warehouse."

Mr Hammond says there is a possibility a price change could lead to loss of business.

"There are some customers who are a few miles away but we have a relationship with them and they might decide to go with someone more local," he says.

Mr Hammond says the business is trying to make contingency plans but it is difficult as "things are changing every day".

"I am worried. I think it's going to keep rising and rising."