Fuel price rises threatening existence of small businesses

Joaquín Bisbal, the president of the transport association in Menorca, ASTRAME, points out that the price of diesel increased by 21% between January and December 2010 and that it has risen still further during January. Bisbal explains that "costs have risen greatly and the volume of work has dropped, above all in respect of the transport of material for construction", as a result of which profit margins are very small; a situation that has forced management to optimise resources to minimise costs. The association's president hopes that the sector will act at national level to bring about a change in trend.

According to an E.U. report, a barrel of Brent crude that cost 73 dollars in 2010 now costs 96 dollars, with the result that, to fill a 50-litre car tank with petrol now costs 64 euros, nine more than last year, and to fill it with diesel would cost an extra 10.40 euros.

The rises are obviously also affecting professional drivers such as taxi and coach drivers. Cristóbal Vidal, of Autocares Vidal, concurs with Bisbal's assessment of the price increases which are a problem for his company as they can not be passed on to the customer as the contracts have already been signed.

Other sectors are also affected, such as agriculture and fishing. The president of the Ciutadella Fishermen's Guild, Josep Caules, states that, even though diesel is subsidised and free of IVA for the sector, the increases have had an effect and he has been in contact with the Balearic Federation to find out whether any action was planned to bring a halt to the rise in prices.

Pau Bosch, the president of the Menorcan agricultural association FAGME, explains that "practically all the machinery we have works on diesel" and that, with the price increases, they are now paying around one euro a litre including the subsidy, compared to 0.60 euros a few years ago; the high cost of fuel making the survival of the sector very difficult.