Fuel crisis: 'Our costs have gone up hugely and I don't know where it is going to end'

Coach operators across Meath are worried about the future of their businesses because of rising fuel prices.

James Carolan who operates 24 school contracts said his costs have gone up enormously and he cannot run at a loss.

“Some of my existing school contracts were signed when diesel was only at 90c a litre.

“Our costs have gone up hugely and I don't know where it is going to end.

“I bought 14,300 litres last week and it will only last ten days. I don't know what price it will be when we have to buy it again.

“The reduction in the excise duty made no difference.'

“I spoke to a chap with a lorry business this week, who had two trucks and he has taken them both off the road.”

Mr Carolan says he has 27 employees and he is worried about their jobs.

“I don't know what will happen if we have to park up the buses, but we will keep motoring for the time being,” he said.

Michael Tully says the future of his business is up in the air and he will be looking at the various routes he operates to see if they are viable.

He points out that the government's attempt to help by reducing excise duty will not make much of a difference as prices continue to rise.

"The price of diesel has gone 35c in the last ten days," he pointed out.

"Most of our work is contract work for Bus Eireann. We have five year contracts which are almost at an end.

"How do we price any new contract when the price of diesel is going up on an hourly basis," he asked.

"The reduction the government gave us doesn't even make up for the price increases in the previous 24 hours."

Mr Tully said the fuel crisis comes on top of the problems experienced by the industry during the Covid pandemic.

"We did get help from the government, but it was a difficult time and now it is hardly worth keeping a bus on the road.

"I bought two 141 buses in 2016 and have big repayments on them. The future of the business is now up in the air."

The Coach Tourism and Transport Council of Ireland has warned that the viability of the industry is in question.

The representative body said that the measures to reduce excise announced yesterday fall far short of what is needed to address soaring inflation.

They have called for the introduction of a set price for fuel that represents a defined amount per litre and the setting of the discounted price of diesel lower than petrol to acknowledge the key role the fuel plays in supporting the operations of businesses.

The council has also called for the immediate introduction of variation clauses in all state contracts for school transport, to allow for flexibility when the industry incurs a drastic change in operational costs.

"With the cost of fuel becoming largely dictated by geopolitical events and global energy markets, the need for flexibility in these contracts has never been clearer. The inclusion of such clauses would ultimately act as a buffer and would safeguard the transport sector against crippling increases in the cost of fuel while ensuring continuity and consistency of routes and service provision," said chairperson, John Halpenny.

“While I acknowledge the efforts of the Government in seeking to address the fuel crisis, the simple reality is that these latest measures fall short of what is needed to ensure the survival of our industry.

"It will do little to reassure bus and coach operators throughout the country, who are continuously battling against the soaring cost of fuel”.

“The commercial bus sector forms an integral part of Ireland’s national transport network, and our members are at the forefront of service provision.

"Crippling fuel costs pose a direct threat to the viability of our businesses. Failure to introduce further measures to mitigate these costs, will ultimately lead to a reduction in services - a situation which could cause significant disruption and dislocation of passengers,” he said.