“Government and haulage customers must respond to soaring fuel prices” says RHA
Large numbers of hauliers face being out of business by soaring fuel prices, warns the Road Haulage Association.
Diesel prices are going up daily and while that is hard for motorists it can be hugely damaging for haulage businesses, the RHA warns.
A year ago, a litre of diesel cost 76.5 p/lit (exc. VAT). Today, the price is around 108p/lit. That means that a typical articulated truck that cost £35,000 a year to fuel 12 months ago now costs £49,000 a year to fuel.
Hauliers are now being warned of a further 6p increase in the next seven days. That would take the annual bill to £52,000.
Fuel now represents well over 40 per cent of their costs and there is very little they can do to cut that bill, by even a small amount.
It is absolutely essential that haulage buyers accept substantial and inflationary increases, warns the RHA. “We now have firm evidence that, in this period of unprecedented cost volatility, some haulage buyers have refused to give justified and essential increases because they have not budgeted to do so. We believe that such actions are short-sighted and will damage not only their hauliers but also the availability of essential, cost-effective haulage services,” says chief executive Roger King.
“We know very well the difficulties that many customers have in passing on the costs to their customers. But the haulage industry cannot possibly absorb the impact of surging oil prices,” he says.
“Only the government is gaining from these increases, through its VAT. It already charges twice the rate of duty on diesel as the rest of the EU and it is having an income bonanza from the new increases. It is surely inconceivable that the Treasury would go ahead with the 2p increase planned for October 1 and we call on the Chancellor to abandon that increase now.
“The Government says that fuel duty has fallen slightly behind inflation – by about 11 per cent – since 1999. Since that reference year, the price of diesel, before tax and duty, has risen by almost 500 per cent.
“In addition, we repeat our call for all parties to support the amendment to the Finance Bill, which calls on the government to bring some sense of stability to the price of fuel through a regulator mechanism and to recognise the particular plight of the haulage profession,” King says.
The Road Haulage Association – more than you think
For more details, contact RHA Head of Communications, Kate Gibbs on . . .
Tel: +44 (0) 1932 838917
Mob: + 44 (0) 7979 531451
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