Impact of Rising Energy Prices on Charity Operations
Shane Dorsett, chief operating officer at The Felix Project, highlighted the challenges posed by increased energy and fuel costs due to the ongoing conflict in the Middle East. The charity operates large chillers that store chilled and frozen food across the city, and these rising prices are expected to affect their operations significantly.
"We have big chillers that hold all of our chilled and frozen food across the city, where we'll see increased prices. We will feel a pinch and so will our charity partners downstream."
The Felix Project is a food redistribution charity that has been impacted by the surge in energy prices, which have escalated following the effective blockage of the Strait of Hormuz, a critical passage through which 20% of the world's oil trade transits.
Fuel Price Increases Across the UK
In the UK, average petrol prices have risen to approximately £1.52 per litre, an increase of about 20p since the onset of the conflict. Diesel prices have climbed to just over £1.82 per litre. This translates to an additional cost of roughly £10 to fill a typical family car with petrol and over £21 extra for diesel.
The Felix Project's Scale and Concerns
Last year, The Felix Project rescued 18,000 tonnes of surplus food from more than 200 suppliers and distributed it to around 1,200 community organisations throughout London. Dorsett expressed concern about the impact on their logistics, noting the extensive use of vehicles for distribution.
"We've got 60 vans out on the road, so we have concerns there."
Challenges for Businesses: Fitbakes' Experience
Fitbakes, a bakery based in Paddington with products available in over 2,000 supermarkets, reported that rising costs are making business operations more difficult. Founder Ella Rauen-Prestes described the current focus as survival after years of steady growth.
"I am seeing businesses like ours that started with us, 90% of them [are] folding,"
"And I think we just, we found different ways to cope."
Calls for Government Support Amid Ongoing Conflict
Both businesses and charities, including The Felix Project, are urging the government to provide support as the situation in the Middle East continues to affect energy prices. On Wednesday, Prime Minister Sir Keir Starmer acknowledged the economic challenges posed by the Iran war.
"Dealing with the economic consequences of the Iran war would 'not be easy'."
To date, the Labour government has announced additional funding to assist those using heating oil.
Government Response and Measures
A spokesperson from the Department for Energy Security and Net Zero stated:
"Families and businesses will be worried about the impact of conflict in the Middle East here at home. The government is determined to fight people's corner.
We have acted to prevent unfair practices like price-gouging, and ensure businesses get a fair deal on their bills.
We are working to end this conflict as soon as possible, but whatever happens we'll take the necessary action to tackle the affordability crisis."
Sir Keir Starmer has also indicated that the government would intervene if fuel companies attempt to exploit customers.
Despite the conflict, the government maintains that the UK’s oil supply remains stable and has advised against panic buying.
Additional Information
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