Business leaders in the West Midlands fear spiralling fuel prices could damage the economic recovery.

With fuel prices at record highs – and fears that prices at the pumps could reach as high as 140p a litre by April – concern has arisen about the knock on effect to the private sector.

Prices at the pump have risen to new highs since the turn of the year because of duty, VAT and rising international oil prices. Louise Bennett, chief executive of the Coventry and Warwickshire Chamber of Commerce said the Government must follow through on its promise to look at a fuel stabiliser.

That would see duty rise and fall depending on oil prices to keep costs at the pump more consistent than they have been over recent years.

Ms Bennett said: “It’s hurting business and it’s hurting consumers too. We cannot afford for prices to keep rising, and for Governments of all colours to simply shrug their shoulders and blame it on the international prices

“We know international oil prices are volatile and we can’t change that but the Government has control of duty and that is where it can make a difference to businesses across the country, including here in Coventry and Warwickshire.

“When times are tough and the private sector is being asked to take on more people to make up for the jobs being lost in the public sector, spiralling fuel costs are real burden.

“Of course, haulage businesses feel it first but eventually the whole economy feels the effect because it filters through.

“Not only that, at a time when the Government would like to curb inflationary pressures it seems ludicrous to allow pump prices to keep rising because that only serves to accentuate the problem.

“We cannot afford for an empty promise – we need action to address this issue or it has the potential to throw the economic recovery off course.

“That’s not scaremongering, it is a fact. If rises continue unabated, businesses and consumers will struggle to keep filling up and while we all want to see greener, more sustainable energy the infrastructure is not in place for everyone to adopt that approach yet.”