Transport bosses have warned hundreds of jobs are at risk because of soaring fuel prices.

Companies across Sussex have been forced to up their rates and consider cuts because they can no longer afford charges at the pumps.

The price for a litre of diesel was more than £1.33 on some forecourts in Brighton yesterday as oil prices reached £65.80 a barrel.

Haulage company bosses warned more could go the way of Arundel firm Page Group, whose transport division went into administration in February, causing 60 jobs to be axed.

Nicholas Pulford, director of Lancing-based Sussex Transport, said: "There are other businesses struggling to stay afloat and it's inevitable that some will not survive.

"We are in an industry where our second or third largest outgoing - fuel - has risen by 30% this year. There is going to be a detrimental effect."

Mr Pulford is one of several bosses who said they had tried to absorb the rising cost of fuel at first but had now been forced to increase their own charges.

According to Mr Pulford, this means the cost will be transferred to consumers, who will be forced to pay more in shops for clothes, food and other items.

He said: "It's not just a problem for us, it's a problem for everyone."

However, he added that his firm was in good health and no job cuts were planned.

Gary Walker, a manager at Newhaven firm Silverdale Transport, said it was difficult to know what level to set rates at.

He added: "We don't want to upset our customers but we can no longer afford to defer the cost. It has taken a while but most realise that we have to do it now.

"Fortunately, we aren't having to make cuts here but I'm convinced it will drive others out of business and if people don't get a grip on it, there will be more that go."

Firms across Sussex, from Rye to Chichester, said they were facing a difficult period.

Many truckers and van drivers have complained that fuel taxes and prices in Europe are almost 20p lower per litre, meaning foreign hauliers bringing vehicles into Britain had a competitive advantage.

Mr Pulford said transport firms were desperate for the Government to take action but knew cuts were unlikely or not expected to make a significant impact.

Newhaven's economy, in particular, could be badly hit by the rising prices because of the large number of transport firms based close to the town's port.

The area's MP, Norman Baker, has begun lobbying for something to be done on behalf of the firms.

He will present a report to Parliament next week on behalf of the Liberal Democrats, calling for tolls on roads which would charge more for European lorries coming into Britain.

He said: "The real lesson for the report, however, is to appreciate that oil prices are going only one way - up.

"The Government should be identifying how best to remove our dependency on oil. Fiddling around with a few pence will not do much."

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