Lanchester fish bar faces rising oil costs after Iran war

Oil markets have become increasingly volatile since the first attacks in the region at the end of February, with fears of major disruption to key shipping routes in the Middle East.

When crude prices rise, the knock-on effects often include higher fuel, transport and business energy costs.

Rich Weatherburn, owner of Grandpa’s Fish Bar in Lanchester, County Durham, said: “It’s actually our first birthday this week, and looking back at the invoices shows just how quickly costs have moved.

“A year ago, we were paying about £195 for a box of cod. Today, the exact same box is around £325.

“The situation in Iran is concerning for many reasons.

Grandpa’s Fish Bar owner Rich Weatherburn said the impact of the war in Iran has ‘rippled’ through the business sector. (Image: Sarah Caldecott)

“Speaking specifically as a Fish and chip shop owner, we are particularly exposed to fuel and energy costs because it affects everything from the fishing boats to deliveries and the fryers in the shop.

“When oil prices rise globally, those costs ripple right through the supply chain.

“There’s a real concern across the industry that if fuel prices keep climbing, fish prices could go further still.

“Fish and chips has always been Britain’s affordable takeaway, we are doing all we can to keep it that way and keep the lights on simultaneously.”

Another big pressure point is the amount of energy required to keep fryers running throughout the day.

Cooking at consistently high temperatures uses large amounts of gas or electricity.

Molly Monks, an insolvency specialist at Parker Walsh, warned that smaller food businesses are particularly vulnerable in times of global economic instability.

She said: “Fish and chip shops typically operate on relatively tight margins, so even modest increases in fuel, oil or electricity costs can quickly start to bite.

“Frying food commercially requires constant heat. That means businesses are directly exposed when energy prices begin to rise.

“If fuel becomes more expensive, it costs more to move fish, potatoes and supplies across the country.”

She also pointed out that these increases rarely happen in isolation, saying: “It’s rarely just one bill increasing. Higher energy prices can also push up refrigeration, packaging and supplier costs.

“Bigger chains may have longer-term supplier contracts or more financial protection. But small independent businesses often have to respond quickly when costs start rising.”

She warned that global events can hit high street businesses much faster than many people realise.

Mrs Monks said: “International events can filter through to everyday businesses very quickly.

“For firms already operating on narrow margins, even small cost increases can make a big difference.”