The co-owner of a Taunton taxi company has warned that if fuel prices continue to rise, many businesses such as his may be forced to close.

Max Bishop who runs Taunton Taxi Services says the increasing cost of fuel is having a 'massive effect' on his business. 

He believes that once the cost per litre hits £2 'that will be it' across the country.

READ MORE: Petrol prices in Taunton jump by 20p per litre in two months

Mr Bishop said: "The costs are spiralling out of control. We are spending £300-£500 a week on fuel. It has affected us massively.

"It won't be long before we start losing drivers. There will be no incentive for them financially and no mechanism to help them cope with rising costs.

"This is going to trickle down and affect so many people who might need taking to hospital or school. There will be a knock-on effect on the NHS, it's going to hit everyone hard.

"I feel sorry for the independent drivers who are sat in the ranks and waiting for fares. As a business, we can sustain this pressure for a while but for the people out on their own, it is crushing."

Mr Bishop said Taunton Taxi Services, which currently employs 17 drivers, was recently permitted by Somerset West and Taunton Council to put its fares up for the first time in 12 years, to help mitigate the damage.

He said The Taunton Taxi and Owners association applied for relief on behalf of the entire local trade at the end of last year, proposing an increase of 20 per cent to the fare cap.

He said the council revised this to 9 per cent when a decision was made.

But petrol prices are rising so much that the increase was not enough and the industry needs more help, so the association is pushing for the percentage to be raised, he added.

Mr Bishop said: "The council controls the pricing, it's got to through so many meetings to put it up again.

"A lot of councils in the country are being proactive, but for us, it's like getting blood out of a stone.

"Something's got to give."

In another area of the county, South Somerset District Council will soon launch a consultation proposing a fare increase of 17 per cent.

Somerset West and Taunton council has been approached for a comment.