Llanelli, Carmarthenshire, Wales: Castell Howell Foods, one of Wales’ biggest food companies, is facing a £2m diesel bill as prices soar.
The company has seen fuel costs jump 30% in a month after the Russian invasion of Ukraine, according to an article on the BBC website.
The company has a fleet of about 150 vehicles, covering Wales and the west of England.
Castell Howell usually spends about £1.2m on fuel, but finance director Nigel Williams told the BBC that the company’s bill has rocketed in recent weeks.
“‘I’ve never seen a price increase like this. What we’re seeing over the last month has been an increase of around 30% in the prices we pay and, over the past year, an increase of around 60%,” he said. That represents an increase of around £700,000 in a year.
If price rises are sustained, the company faces an annual fuel cost “increasing to closer to £2m,” which he said posed “a significant challenge” for the business.
Williams said the company accepts that it will have to be as efficient as possible, passing as much of the price increases on.
