Fuelish to think we’re on road to recovery

ONE positive amid the current economic gloom is falling petrol prices following this summer’s fuel protests.

But, with the credit crunch biting hard, is it enough to save local hauliers — and will the trend last?

Richard Hooton spoke to those involved in the fuel protests to see if the change is enough to help them survive.

OLDHAM’S lorry firms said they were on the brink of going out of business when they staged a go-slow convoy through the borough four months ago.

Petrol prices had rocketed to an average of 118.4p a litre for unleaded in Oldham and 131.9p for diesel, costing them thousands of pounds a month more and leaving them struggling to make ends meet.

Vehicles crawled round the ring road and through Royton, Failsworth and Hollinwood as members of the public signalled their support.

But they ensured that minimal disruption was caused, as the hauliers sought to highlight their plight without inconveniencing residents.

Since the mass protest — carried out by 70 lorries and supported by many car drivers — there has been the relief needed with prices falling to more manageable levels.

Forecourts

Cheaper oil, a barrel has slumped from $147 during the Summer to $60 now, and a price war between supermarkets has seen unleaded drop to an average 96.7p a litre and diesel 109.3p on the borough’s forecourts.

But the worldwide banking collapse and economic turmoil has meant it’s just a silver lining on a very dark cloud.

While lower petrol prices helps, hauliers, like many other business, are fighting to survive.

And they are wary that oil companies are looking to push prices back up once the worst of the credit crunch is over.

Oil cartel Opec, the 13-nation producers group responsible for producing about 40 per cent of the world’s total supply, has already cut oil production by 1.5million barrels a day, about five per cent, to steady prices.

The move forced our Prime Minister Gordon Brown to warn that any reduction made in a bid to push up oil prices would be “scandalous” at a time when major economies were heading for recession.

Meanwhile, the Government could put a 2p-a-litre fuel tax rise, twice postponed, back on the agenda to make any joy shortlived.

The go-slow was just one of a series of protests, including two in London and one on the M60 by bikers, as anger grew over the price rises.

Dane Firth, director of Royton’s DP Firth Transport, claimed at the time the Government had to take action or firms would go under.

While he acknowledges that the action in Oldham may not have affected the prices at the pumps, he believes it was worth it to highlight the issue and unite people.

He said: “I think it was good and went very smoothly. The police were very good and had no problems. I don’t think the protest helped with the worldwide problems but if it only created solidarity between people in Oldham and hauliers and raised awareness then it worked.

“The drop in fuel prices does make a difference. Whether it’s 1p, 2p, 4p or 10p it makes a hell of a lot of difference.

“But the bottom line is that it will go back up again. Oil companies say they want to cut production to bring prices back up. If they could get away with putting prices back to what they were they would do it.

“At the moment they are frightened of putting it back up because of the worldwide economic climate. It may not happen before Christmas but they will go back up.”

The economic turmoil has brought fresh problem though, and other businesses suffering and job losses impact on the haulage trade.

“It’s like jumping out of the frying pan and into the fire,” said Mr Firth. “Businesses are going to the wall and suffering. My bank manager says only the strongest will survive. I will survive but a lot of haulage companies will give up.”

Edna Gill, Oldham area manager for the Road Haulage Association (RHA), was part of a contingent that descended on London in the summer to lobby for changes.

The organisation claimed the entire UK economy was at risk from rising fuel costs.

She said: “Fuel prices were that high that many people were in danger of going out of business.”

But, she added, about the drop in prices, “It’s never enough because of the pressure. And it’s just been replaced by other worries.”

She said the RHA continues to meet with the Government and had called for action to help small businesses, such as ensuring authorities and companies pay their bills on time to help ease cash flow problems. And they are urging for fuel tax not to be increased.

She said: “We have had meetings with the treasury and it has been listening to us. It’s never a good time to increase fuel duty..”

It’s not gloom for everyone though.

Last week, BP faced renewed calls for a windfall tax and a cut in pump prices after posting profits of £70million a day.

Between July and September, the oil company collected its biggest ever earnings, recording a profit of up to 148 per cent at £6.4billion.

BP denied hoarding profits, saying it was paying them out in taxes and dividends.