Isle of Bute businesses feel impact of rising global oil shock

Businesses on the Isle of Bute say they are already feeling the impact of rising global oil prices, with some warning their future could be at risk.

The surge follows disruption to the Strait of Hormuz, a key shipping route in the Middle East, which sent oil prices soaring and pushed up the cost of fuel, heating and everyday goods.

Although Donald Trump has suggested the war with Iran could soon be over, the economic shockwaves from the disruption to oil supplies could be felt for years to come.

In remote communities like the Isle of Bute, where many homes and businesses rely on oil rather than mains gas, the impact can be particularly acute.

STV News visited Colintraive, where rising costs are forcing some businesses to make difficult decisions.

At the Colintraive Hotel, the business is also home for owner Clare Banner and her young family.

A small flat behind the hotel used to house the chef. But after a spike in the price of heating oil, Clare moved in with her family to help cut costs.

Clare told STV News: “Hospitality is on its knees at the moment as it is, so to have that (high energy prices) hit us, we didn’t really know what to do.

“We really had to put our heads together to say something drastic has to change.”

It had long been Clare’s dream to raise her two daughters in this part of Argyll.

But life on the island is remote and off-grid. With no mains gas supply, their heating and hot water run entirely on kerosene.

In just six months, the price of a tank of oil has more than doubled.

Now Clare says she is trying to find ways to save money and protect the future of the business.

“If it goes on this way, there isn’t a future because we need to have a sustainable business to feed our children. They go to the local school and we are the hub of the local community here – the pub with the post office and these things aren’t sustainable in this climate.

“Something needs to change.”

Around 250 people live in the village, and Clare relies heavily on visitors to keep the hotel running.

And she is not the only business in the area feeling the strain.

The Waverley paddle steamer carries day-trippers “doon the watter”, around the Kyles of Bute and beyond. But running the historic vessel comes at a heavy fuel cost.

Each summer it burns around one million litres of marine gas oil.

This season, passengers travelling down the Clyde will see a fuel surcharge added to their ticket price.

Paul Semple, managing director of Waverley Excursions, said: “We’re looking at a cost increase of 65%, which means over 400,000 extra in fuel costs and that really risks Waverley’s future.

“If we don’t raise enough funds from operating the ship in the summer, we don’t have enough money to fund next winter’s refit and that is of major concern.”