£2 Diesel Hits North East Charities and Businesses Hard

Diesel has climbed above £2 a litre in the UK for the first time, and charities and businesses across the North East say the increase is pushing their operations toward the breaking point.

The RAC motoring group confirmed the record average price. The surge follows seven months of war involving Iran, which has severely disrupted the production and transportation of wholesale oil and refined products from the region and driven prices up worldwide.

What does the price spike cost a charity?

Daft as a Brush, a Newcastle-based cancer charity that transports patients to hospital appointments, now spends £15,000 a month on diesel — £5,000 more than last year. The charity drives 600,000 miles a year across its fleet of 30 vans.

The rising fuel bill has already forced a strategic reversal. The charity had planned to replace its diesel vans with electric vehicles. It can no longer afford the upgrade because the money is being swallowed up at the pump.

Volunteer driver Davey Hall described the shift in his own running costs: "Before the big hikes, we used to maybe fill up and it would take £40-45. Last week, it was £94 to fill the tank from half full."

Head of income generation Scott Jobson said the charity gets no relief on fuel purchases and the extra spending eats directly into donated funds.

"At the pump, what you see is what we pay," Jobson said. "It stunts our growth and development."

What does it mean for commercial operators?

In Middlesbrough, Teesside Minibus Hire faces a different squeeze. Director Billy Johnson said the company signs contracts with schools and businesses that can span multiple years — contracts written when fuel was far cheaper.

"We're not running at a loss yet, but we're running close it to it not being worthwhile or sustainable," Johnson said.

The company has tried passing costs on to customers using services such as day hires. But those customers are fighting inflation of their own and are not always prepared to pay higher prices. Instead, Johnson said, people are turning to cheaper, unlicensed hire services that do not carry the same overheads.

Asked whether the business could survive if fuel prices do not fall, Johnson gave a blunt answer: "Long term, probably not."

Is government action coming?

The government announced in May that it would extend a fuel duty freeze until the end of the year. The freeze caps the tax at 5p per litre for petrol and diesel. The previous Conservative government introduced the measure after Russia's full-scale invasion of Ukraine pushed prices up in 2022.

On supply, the government has stressed there is no cause for concern about potential diesel shortages linked to the Iran war, saying the country has a "diverse and resilient supply".

That reassurance addresses availability, not affordability. With the duty freeze expiring at year-end and no targeted relief for high-mileage charities and operators like Daft as a Brush and Teesside Minibus Hire, the region's transport-dependent organisations face a winter of tightening margins — or worse.