Rising fuel prices spark WA Ministers warning to small business

By: Chris Smith


Wester Australian Small Business Minister Margaret Quirk says petrol prices, flagged to soar to more than $2.50 a litre within

Wester Australian Small Business Minister Margaret Quirk says petrol prices, flagged to soar to more than $2.50 a litre within six months, were a wake-up call for small business operators who relied on transport or fuel in their businesses.

Quirk says increased prices caused by the rising cost of crude oil would immediately affect small business and warned that business owners should implement changes well before prices hit the high points.

"Small businesses involved in the delivery of goods should look at streamlining their services to reduce mileage, or even downsize their fleet if possible," she says.

"Retail businesses should also check that profit margins are not being eroded by price increases imposed by other suppliers."

Quirk says the rising price of petrol would also affect household spending, which ultimately affected many small businesses.

"When everyday items such as petrol and food increase in price, discretionary spending on non-essentials drops," she says.

"This often means less eating out, fewer weekend trips away and fewer luxuries for the household.

"It is important for small business operators to have a plan in place to see them through these difficult times."

The Small Business Development Corporation has a team of experienced business advisers who provide free, confidential information and guidance on business planning, and how to manage running a small business.

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