It has been revealed that small businesses are struggling to cope with the rising cost of fuel, with van insurance drivers and couriers particularly suffering at the cost hike.

The average price of petrol increased by almost 5p between May and June, with many insurance firms stating that this is the second highest monthly increase on record.

The average cost of petrol currently stands at 102.66p per litre, compared to 97.68p per litre in May. Diesel has risen by 1.36p to 104.85p per litre.

As a result, many companies are feeling the financial pressure of such increases at a time when budgets around the country are already tight.

'Disastrous result'

A previous survey by the Federation of Small Businesses (FSB) exposed that 79% of the members it interviewed thought the Government's increase in fuel duty would have a disastrous result on their business.

An insurance company said that the latest fuel jump at the pumps means that refilling a typical 50-litre fuel tank would now cost an extra £2.49. This will come as a massive blow to van drivers and couriers as they look to limit their outgoings during the financial downturn.

As a result, van drivers and couriers, as well as many other small firms, will no doubt be looking to the Government to provide them with additional aid as they try and cope with the latest set of fuel rises.

Angela Smith, the spokesperson for the Federation of Small Businesses, said:"Any increase has a knock-on effect on all levels of supply chains whether it's consumer or business-to-businesses. Small businesses struggle to compete with large businesses and this is due to the fuel price."

Ways to keep the cost down

Therefore, van insurance firms have advised drivers looking to save money, to shop around for the best deals and to invest in a Satellite Navigation system, so they do not waste petrol or time by getting lost.

Drivers have also been told that they could benefit from cheaper petrol costs, by filling up at supermarkets. A comparison website revealed that these stores tend to offer reward points or vouchers that make filling up at the pumps cheaper.

However, the site warned that motorists must be picky when choosing such shops, as petrol prices can differ greatly.

Van drivers have also been encouraged to keep their tyres properly inflated as this improves fuel economy. Drivers were warned if air pressure is down 10% on the recommended level, petrol or diesel consumption can rise 2.5%

Louise Doherty, from a petrol price based website, said: "Now would be the perfect time for the Government to cut fuel tax. It would help drivers and businesses, and stimulate spending to get the economy back on track."

Vince Cable the Liberal Democrats treasury spokesman, said: "We must think about how to cope with another surge in oil prices, even while we struggle with the recession and rising unemployment.

"Motorists would look to the Government to lower taxes but the Budget deficit is now so dire that there is simply no money for tax cuts."