Rocketing fuel prices are hitting customers hard, but small garages at the heart of local communities are also suffering.

One of the first casualties looks set to be Bulldog Service Station in Hockwold, run by husband and wife Barry and Marilyn Bye for the last 20 years.

The Main Street garage, which provides car body repairs as well as fuel, is set to shut its forecourt this summer because of the prices petrol and diesel suppliers are charging.

Mr Bye (58) said: "The smaller garages are being persecuted because we can't stock large volumes – I can only stock 3,000 gallons at a time. Smaller wholesalers are going out of business and large wholesalers like Esso won't supply it to smaller garages because we do not have the capacity to buy bigger volumes.

"We can't buy petrol any cheaper than what they are selling it for down the road. We have to pay £1.27 a litre for diesel ourselves and you have to add five or six pence to it and still pay VAT to the Government."

Recently the garage has been forced to charge around £1.31 for diesel and £1.22 for unleaded petrol – several pence higher than the national average – and Mr Bye believes independent garages are struggling across the UK.

Smaller garages also, for example, have to pay for their own banking and forecourt maintenance, while syndicated garages have these costs covered by their companies. Mr and Mrs Bye have decided to shut the forecourt at the end of July and, although car repairs in the workshop will continue, the village looks set to lose an important service.

On Saturday mornings particularly, the garage is busy with residents and acts as a social hub in the village.

He added: "Our customers have stuck by us, even though we are a lot dearer than anyone else. I feel guilty for passing the cost on to them.

"We are the only garage in Hockwold and people travel miles here. We offer a more personal service and advice."