A PARTNER in a Chepstow haulage firm fears rising fuel prices may be the final nail in the coffin for the business.

Dave Bollen, of Stroat Transport, said in the last ten years since the business started, it has gone from profit to just scraping by due to diesel prices topping 130p per litre.

This means having enough diesel to carry out their work for local firms, costs £1,000 per month, per vehicle.

The company has three lorries and one full time driver, delivering construction and agricultural products to different parts of the UK.

Mr Bollen said at first they were making a decent profit and could invest back in the business, but this is no longer possible.

He said: "The main problem is not being able to pass fuel increases on. We are not going to be running the business for nothing."

As well as the haulage side of things, Mr Bollen uses farmland in Stroat to produce wheat and oil seed rape for large firms and he said the tractors are also affected by the high fuel prices.

On Tuesday, Newport haulage firm Bevan and Sons Ltd told the Argus they plan to close at the end of the month due to the cost of fuel.

The family business, which started in 1908, can no longer afford to carry out work, as it is now costs £5,000 per month extra.

Taxi companies are also feeling the pressure, with manager of Dragon Taxis John Lavender, saying putting their fares up to compensate for the increase would lose them customers.