Small and medium sized businesses (SMEs) have called on the Government to introduce contingency plans to alleviate the impact of fuel price increases as a result of the war in the Middle East.
Small business representative group Isme said many SMEs are being “disproportionately affected” by the spike in fuel prices, with businesses across the retail and hospitality sectors facing particularly heavy energy bills.
The group warned that if the current fuel cost crisis persists, many businesses will have “little choice” but to pass these rising costs on to their customers or consumers.
“Essential service providers, including nursing homes and childcare facilities, are under significant strain as they cannot reduce energy consumption without compromising the care provided to vulnerable people and young children,” Isme said.
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“Therefore, Isme is calling on the Government to give serious consideration to measures that will mitigate the impact of rising fuel costs and to ensure a contingency plan is in place to support SMEs if the crisis continues or escalates further.”
Isme chief executive Neil McDonnell said SMEs are being “hit hardest” by rising fuel costs, particularly those in energy-intensive sectors such as retail and hospitality.
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“For many SMEs in Ireland, energy is not a discretionary expense, it is fundamental to keeping their doors open and serving their customers,” he said.
“Without intervention, many small businesses will be forced to absorb unsustainable costs or pass them on to consumers, placing further financial strain on communities and the wider economy.”
The United States has issued a 30-day waiver for countries to buy sanctioned Russian oil and petroleum products currently stranded at sea.
US treasury secretary Scott Bessent said the move, announced on Thursday, was a step to stabilise global energy markets roiled by the Iran war.
The move was the latest attempt by US President Donald Trump’s administration to tame energy prices after the US and Israeli strikes on Iran and the subsequent response by Tehran widened regional tensions and paralysed shipping through the Strait of Hormuz, disrupting vital Middle East oil and gas flows and sending energy prices higher.
On Wednesday, Washington announced it would be releasing 172 million barrels of oil from the strategic petroleum reserve in an effort to curb skyrocketing oil prices in the wake of the war in Iran. That release was part of a broader commitment by the 32-nation International Energy Agency to release 400 million barrels of oil.
