The boss of a Norfolk transport company has said record diesel prices could add more than half a million pounds to the firm's costs each year.
Charles Sanders, who owns Sanders Coaches, said rising diesel costs – which hit an all-time high of 199.18p a litre this week – will add more than £500,000 to its costs over 12 months, compared to prices before the start of the Iran war in February.
On Monday, the price of diesel surpassed the previous record of 199.09p set in 2022 after Russia’s full-scale invasion of Ukraine.
Over the past seven months, the US-Iran conflict has severely disrupted the production and transportation of wholesale oil, causing the cost of fuels made from oil to surge.
The cost of diesel has now risen by 59p a litre, or just under 40pc, since the outbreak of the war in the Middle East at the end of February.
“Fuel prices are now the number one concern for bus operators in Norfolk,” said Mr Sanders, the firm’s managing director.
“Diesel is one of the largest cost areas of running transport and the increase in its costs is not something that can just be absorbed.
“There is also a chance that the cost may rise even further. At today’s price compared to February 2026, our costs would be over £500,000 more in a full 12-month period.”
Mr Sanders said due to the price cap on fares, bus and coach companies are unable to offset the cost increase by raising prices like other businesses have done.
He warned travel firms could be forced to cancel services.
“The government are providing some help on commercial services,” he said.
“But those operated under contract to Norfolk County Council, like home-to-school and the more rural bus services, additional funding will need to be found by the county council, whose budgets are already squeezed.
“Currently operators are waiting for a response from County Hall, but services are likely to be at risk of cancellation if costs cannot be passed on somewhere as they are now becoming unviable.”
