The sharp rise in fuel prices triggered by the global energy shock has reached what campaigners have described as a “critical point”, with growing concerns that small businesses and motorists are bearing the brunt of rising costs.
According to campaign group FairFuelUK, more than a third of sole traders surveyed, including tradesmen such as plumbers, electricians and bricklayers, say current pump prices could cause their businesses to collapse unless relief measures are taken.
The warning reflects growing pressure on sectors heavily dependent on road transport, where rising diesel costs in particular are directly impacting operating costs and squeezing already tight margins.
The survey, based on responses from 3,678 sole proprietors, found that 36.4 percent believe persistently high fuel prices could threaten their profitability. For many, fuel represents one of the largest daily costs, especially in industries where travel between jobs is essential.
Activists argue that without intervention, higher fuel costs could lead to reduced profitability, a reduction in business activity and ultimately job losses in key parts of the economy.
At the same time, a broader opinion poll cited by FairFuelUK suggests overwhelming support from motorists and small businesses for government measures, including cuts in fuel duty and greater monitoring of pump prices.
Howard Cox, founder of FairFuelUK, has called on the government to maintain the current freeze on fuel duty for the duration of the general election and consider further cuts to ease the immediate pressure.
He also called for the abolition of VAT on fuel tax, often referred to as a “tax on a tax”, and the introduction of a regulator to monitor fuel prices and ensure transparency across the market.
The proposals come as fuel prices continue to rise in response to higher oil costs and motorists have already seen significant price increases at the pump in recent weeks.
Activists have pointed to measures in other countries, including France, India and Italy, where governments have intervened to cap prices, cut fuel taxes or support supply chains.
These comparisons have intensified debate in the UK about whether similar measures should be taken to protect consumers and businesses from the effects of global energy volatility.
Chancellor Rachel Reeves has previously described rising fuel and energy costs as the result of “global turmoil”, highlighting the external nature of the pressures facing the UK economy.
However, critics argue that domestic policy decisions, particularly in the tax area, could play a more active role in mitigating the impact on households and businesses.
The problem is further complicated by broader fiscal constraints as the government tries to balance support measures against the need to keep public finances stable and control inflation.
Economists warn that persistently high fuel costs could have widespread effects across the economy, increasing transportation and logistics costs, driving up prices for goods and services and weighing on consumer spending.
The impact is particularly severe for small businesses, as they often lack the financial resilience to absorb cost increases or the pricing power to pass them on to customers.
The situation also raises concerns about inflation, with higher fuel costs leading to broader price pressures, potentially limiting the scope for interest rate cuts and prolonging pressure on the cost of living.
As global energy markets remain volatile, pressure on policymakers is likely to increase in the coming months.
For activists, the message is clear: targeted intervention in fuel costs could provide immediate relief and support economic activity.
The challenge for the government is to balance these demands with fiscal discipline and long-term energy policy goals.
As fuel prices continue to rise, the debate over how best to respond is increasingly becoming a key issue for both businesses and policymakers.
