Gulf crisis pushes up PSV overheads
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• Massive increases in diesel prices caused by the Gulf crisis are forcing bus and coach operators to push up fares, or face cut-backs.
Leicester-based Midland Fox, whose monthly costs have risen by about £35,000, says that if prices do not improve by next year it may have to make cut-backs.
It is having to pay 20% more for dery for its 400 buses and 50 coaches.
Two weeks ago Midland increased its fares by up to 2p per passenger, and it anticipates this will just about cover the extra costs.
Finance director Peter Harvey says the Government could help coach operators by reducing dery tax, and claims that oil companies are profiteering from the Gulf crisis.
David Watson of the Bus and Coach Council says: "Inevitably it is the consumer that is going to have to pay for the price of Government policies."