AS the price of fuel spirals ever higher many East Lancashire businesses are starting to feel the pinch as overheads and costs continue to soar. We spoke to hauliers, road industry chiefs and other businessmen to gauge the impact astronomical fuel prices are having on the area.

WHEN 8,000 litres of red diesel leaked on to farm land in Samlesbury after a botched raid, it became clear that fuel had become a priceless commodity.

In the wake of the spillage at Huntley's of Samlesbury at the end of May, police issued a stark warning for those with large tanks of fuel to be vigilant against further thefts of this nature.

But for owner Eddie Cowpe, the loss was the inevitable result of a year-long increase in fuel prices which now means that diesel is averaging more than 130 pence per litre, with petrol edging ever nearer to that mark.

As he stood peering into the pit he'd dug to collect the oil that spread after the leak, Mr Cowpe said he was sure such crimes could become more common.

"I think there will be more incidents like this theft," he said.

"The price of fuel is now so high that criminals are looking to break locks on tanks like mine so they can get their hands on diesel or petrol."

The real concern following the incident was that a black market could be created for a commodity that is becoming increasingly expensive.

For most, however, the black market is not an option and the East Lancashire haulage industry is one of the main sectors bearing the brunt of the ongoing price hike.

Matthew Kibble, who owns Colne-based Matthew Kibble Transport, runs 20 articulated lorries and believes the cost of fuel is driving up the rate of inflation for everyone.

A year ago it cost Mr Kibble £648 a week to fill one of his wagons, that figure now stands at £955 for a seven day period.

He said: "We are having to pass the cost on to customers at a time when they are already struggling with other base costs.

"It's having a knock-on effect and at the end of the day there will be an economic slow down. We are seeing a slow down in shifting building products and other areas like furniture as people watch what they spend."

And Mr Kibble believes that the Government should bring in concessions for the haulage industry similar to those in place for bus operators.

The bus and transport sector benefits from an essential user rebate which enables companies to reclaim some of the 50.35p they are laying out on fuel duty.

He also believes that foreign trucks should pay to operate in the UK to give domestic hauliers a fighting chance.

He added: "Foreign trucks do not have to pay to be over here, which is unfair on us. We have to pay something to operate on the continent but they are coming over here with massive 1,000 litre tanks, filling up in France where it's cheaper and under cutting UK companies. Something needs doing."

The Road Haulage Association claims that key costs for hauliers have risen by almost 50 per cent since early last year.

It said that, as a result, operating costs for many hauliers had risen by around 20 per cent which must be passed on to haulage buyers and ultimately to their customers. Road haulage is a key driver of inflation, which affects everyone in the UK.

RHA chief executive Roger King said: "To have an impact we need to get directly involved with a parliamentary process that will confront government face to face so that they have to answer publicly as to what they propose to do.

"In addition we will also be campaigning for the October two pence fuel duty increase to be abandoned."

Mike Damms, of East Lancashire Chamber of Commerce, believes that the Government's fuel policy could be having a negative impact on the appeal of East Lancashire as a commuter base.

He said: "If fuel has not come down will two pence a litre cause a behavioural change in drivers?

"It is just a cynical manoeuvre against a hole in the Government's accounts.

"If the Government's argument was that raising the price was to force people off the road then that's not the case because the market rise has not done that in itself.

"Another problem that East Lancashire faces is that it is a peripheral area in some ways and we have to travel to many of the major economic areas. We are also partly rural and it's in our economic interest for more people to commute to and from the area.

"As we get people to raise their skill levels they need to be more mobile. Therefore, there is this paradox between wanting people to be more mobile but having these taxes that act against that.

"It's interesting that some of those hauliers in the south east of the country who are competing against the northern French hauliers who can fill up so much more cheaply."

Peter Boys, director of Rossendale developers B&E Boys, added: "Increasing costs are inevitable, if nothing else, as a consequence of rising fuel costs.

"However the financial burden of vacant rates will, I believe, have a more serious impact in the longer term, resulting in the slow down in new development and regeneration."