Businesses fear for the future due to rising fuel costs

Transport firms in Donegal say they are worried about the future of their businesses due to the continued rise in fuel prices.

Motorists in some parts of the county were paying almost €2.20 for a litre of petrol and close to €2.07 for a litre of diesel on Wednesday, as prices continued to rise in recent days.

A cut in excise duty in March, which saw petrol reduced by 20 cents per litre and a litre of diesel reduced by 15 cents, has not stopped prices from continuing to rise.

Transport businesses in the county have seen their fuel costs rise by 30% or more in recent months with the cut in profit margins sparking fears about the viability of continuing to operate. 

Bus and taxi companies say they are reluctant to pass the extra costs on to regular customers who themselves are struggling with the soaring cost of living. 

One coach operator in the county said he fears the business will become unsustainable if the price of fuel does not come down.

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Cathal McGettigan, who runs McGettigan Travel in Letterkenny, said he will have to review the future of the business in the coming months if the price of a litre of diesel remains over €2.

“If there is nothing done about it we are going to be out of business - there is no doubt in this world,” he said.

The company, which was founded in 1999 and employs 12 people, provides private school transport for children attending six schools in the Letterkenny area. Mr McGettigan said he does not want to pass the rising cost of running the business, which has increased by around €1,500 a week, to parents.

 “We need fuel down below €2 a litre. Once it goes over €2, it blows us out of the water. If we are to make a living the price needs to come down.

“We are going to have to take a long look at it now over the summer to see if we are going to make it to September.”

Michael Gallagher, who runs Gallagher Cabs and Donegal Chauffeur Travel in Donegal Town, said monthly fuel costs have increased by around €600 in recent months.

“The problem is that for things like taking people to Dublin and to hospital appointments, it has gone up a lot more than what you can charge the clients. People are aware of the fuel costs and they will throw you a few extra euros but you can’t really charge your regulars anything extra.”

He said he is worried about how the businesses will cope in the autumn and winter after the busy summer period.

“We are worried about the winter as people will not be moving around as much.”

The rising cost of living has also impacted on business as people are going out less because their disposable income has been reduced, he said.

“People are not taking taxis as much - they are going out once a month instead of once a fortnight as they are paying extra on energy and fuel costs themselves.”