With fuel costs predicted to rise over the coming months The Courier looked at the likely impact on business in a rural corner of Fife.
East Neuk coastal villages and towns are popular with holidaymakers and day-trippers the lifeblood of many local businesses.
But although there are 9000 UK petrol forecourts, incredibly, just two serve the area at Anstruther and Colinsburgh and drivers have to travel to St Andrews or Cupar for an alternative.
The lack of petrol stations was last year identified as a hindrance for tourists staying in the East Neuk by the business community.
That, coupled with the threat of higher prices, has some traders warning that fewer people will take motoring trips around the area.
Martin Dibley, owner of Pets Pantry in Anstruther and a member of Kilrenny, Anstruther and District Community Council, says a hike in fuel prices would be bad news for business.
“The East Neuk is dependant on day tripper drivers for trade, but if fuel prices get higher people will think twice about visiting.”
He added that, though not a popular choice, he would opt for a greater VAT rise instead of a focus on petrol.
“Fuel prices have a direct impact on people. Rises have to made in some way and I feel VAT would soften the blow.”
With his own business to manage, he is only too aware of the impact any rise will have on the bottom line.
“When delivery firms put up their prices, we have to put an increase on to our products,” he said.Stay-cationsElsewhere in town, Mike Sheffield, director of Symphony Hotels which owns the Craw’s Nest said the government needed to do more to encourage people to take “stay-cations”.
“If fuel prices go up it is bad news for everyone.
“The poor exchange rate abroad is helping us but I know venues like golf courses are dropping their prices to attract people over. But in Scotland, it is what it is, and you have to pay,” he said.
With looming spending cuts on the horizon, Mr Sheffield says he does not envisage growth in the local tourist industry.
“The East Neuk is a destination venue. You would not choose to travel through here between Dundee and Edinburgh for instance. But a rise in fuel will cause people to think again about visiting the area,” he said.NecessityThe concerns of the business community have been echoed by MSP for North East Fife, Iain Smith, who claims that for many years owning a car in East Neuk has been a necessity rather than a luxury.
“Government needs to look closely at cutting the duty on fuel for those areas that are car-dependent and disenfranchised by distance.
“The Liberal Democrats have been campaigning for effective measures to provide the maximum duty reduction allowed by the EU for people who live in remote rural areas and buy their fuel at the local filling stations,” adds Mr Smith.
Fuel prices could rise by up to 8% by the end of this year through duty and VAT.
But even sooner drivers could be hit with a 3% hike over the August bank holiday according to the Independent Petrol Retailers Association, blaming it on currency movements and world oil price increases.
Photo used under Creative Commons licence courtesy of Flickr user Lee Jordan.