'This is driving us out'

And taxi drivers, bus companies and haulage bosses are warning that they will have no choice but to pass the rise onto their customers in an attempt to recoup some of extra expense.

The latest round of increases - brought on by a rise in the cost of crude oil - follows a two pence-a-litre rise a fortnight ago and a four pence rise in April.

At the turn of the year a litre of fuel could, on average, be bought for 63.7 pence. That has steadily risen and could soon top 75 pence a litre - or £3.41 a gallon.

Mick Bamber, pictured, of R Atkinson & Sons, a haulage firm on Penwortham, said: "This will have a serious effect on the whole industry.

"Fuel prices went up in the budget and we are struggling to pass that on to our customers.

"We are working in a low-margin budget and these continual rises continue to cut into our profits. "I am in no doubt that some businesses will start to lose money."

Preston's cabbies are also angered by the latest price rises. Many are now working longer hours than last year but are taking home less money.

Unlike other businesses, they can't rise their prices as and when they need to.

Sandra Chesters, from Preston's Hackney Carriage Drivers Association, said: "This is killing off the hackney carriage trade.

"We need assistance from the government on this one because we carry the whole burden of any price increase. It is driving us out of business."

And local bus companies are also looking at their fares in the wake of the recent price rises.

Nigel Feetham, from Preston Bus, said: "Fuel is a significant aspect of our running costs and clearly these contractual rises are a serious matter of concern for us.

"It is inevitable that this will be a factor in affecting fare rises."

The rise and rise of fuel in 1999:

JANUARY: 63.7p a litre

APRIL: 69.9p a litre*

JULY: 71p a litre

AUGUST: 75p a litre

SEPTEMBER: ?

*indicates budget price rise

Converted for the new archive on 14 July 2000. Some images and formatting may have been lost in the conversion.