BUSINESS leaders, hauliers and cabbies have joined a chorus of disapproval over a hike in fuel prices which came into force today.

Transport firm owners say the controversial rise in petrol duty by 2p a litre will end up “crippling” them even further – as the average cost of filling up at the pumps soars to £1.05p per litre.

Despite intense lobbying to get it to reverse its decision, the Government pressed ahead with the increase.

Kim Naish, a Colchester taxi driver, said the news had come as a blow to the already struggling industry.

He said: “It just seems to keep going up and up. Things are very quiet at the moment. The last few months have been pretty hard and this will make things even worse.

“People think taxi drivers make a lot of money, which is not true. I think we are struggling more than most people and this rise in cost is going to make things even worse.”

The duty rise is the third in nine months following rises in April and December. Petrol prices at the start of 2009 were roughly 85p a litre, but could now reach up to £1.10p a litre within weeks.

Martine Hale, owner of Arlesford-based freight and haulage company Flintline Fast Freight, said the rise would cost his business an extra £600 to £800 a month.

He said: “It won’t do any good for the transport industry whatsoever. It is an extremely bad idea to increase running costs. The way businesses are going at the moment, it is going to hit us really hard.

“Everyone is going to be looking for a cheaper quote, but unfortunately we can’t lower the prices.”

The Essex Federation of Small Businesses has also lambasted the hike, labelling it a “blow for business”.

Spokesman David Miles, said: “The decision to go ahead with its 2p per litre increase in fuel duty will add many thousands of pounds to the operating costs of every business in Essex.

“At a time when many businesses are struggling to keep costs down, as banks are still reluctant to provide financial support for firms with cash flow difficulties, this increase in fuel costs is a big blow, and one which the Government could easily have avoided.”