BUSINESSES say soaring fuel prices are driving down their profits.

Colchester firms are feeling the squeeze after the cost of fuel hit a record of £1.20 per litre.

With further rises in duty planned for October and January, some firms are worried about the future.

Others say they will be left with no choice but to pass the costs on to their customers.

Kevin Read, logistics director at Hamblion Transport, in Hawkins Road, Colchester, which has 36 lorries, said: “It’s a massive burden on our industry.

“In the UK, 90 per cent of all goods are ultimately delivered by road.

“Whether they come in by plane, rail or ship, they have to get to their recipient by road. We are an integral part of the country’s industries and we feel we need to have a rebate system that gives us some relief.

“We always have to consider whether we pass those costs on.

“But that only affects the end user. If prices are increased to get goods to the shops, it means our shop and supermarket bills will go up.”

He was backed by Christie Wettasinghe, manager of Hawaii Five-O Taxis, who said: “We spend a lot of money on fuel each and every week.

“We are trying not to pass it on to our customers yet.

“We are waiting to see if it comes down a bit, but if not we will have to respond by putting up our prices.”

Goutham Thangavel, of Britannia Service Station, in Mersea Road, Colchester, said despite rising fuel prices his turnover was down as customers are being more cautious.

He said: “People normally fill up a whole tank, but now they are spending £10 to £20 in the hope it might come down the next day.”