RHA: Hauliers face perfect storm as diesel costs soar
The Road Haulage Association warns that its survey of what members are paying for diesel shows an increased in this core cost of 4% in just a fortnight. The price has risen by 3.88 pence a litre to 104.78 pence (before VAT) from an already high level.
“We are almost back to the all-time peak level of 2008,” said RHA Director of Policy Jack Semple.
“Diesel accounts for a third of a haulier’s costs and these increases further threaten the viability of firms who have been caught in a ‘perfect storm’ of rising prices, reduced credit terms and a credit squeeze, often made worse by customers taking longer to pay their bills.
“On top of all that, in the past couple of weeks, many hauliers have faced an additional business risk; the greatly reduced productivity and increased costs resulting from the appalling problems on the roads has hit many firms profitability and cash flow,” he continued.
“Transport buyers must recognise that they can only squeeze their hauliers so far; they have to pay sustainable haulage rates, which cover cost increases resulting in fuel and other cost increases, if their hauliers are to maintain an efficient and responsive service. “Prices in the shops will inevitable rise as a result of these increases in essential transport costs.
“The issue for government is to consider whether it can afford to go on adding to the economy’s business taxes with further diesel duty increases planned in the New Year and then again in April. The UK already has much the highest diesel duty rate in the EU. “The RHA’s message to the Chancellor is, it is time to stop adding to the tax burden”.
Road Haulage Association – phone us first
For more details, contact RHA Head of Media Relations, Kate Gibbs on . . .
Tel: +44 (0) 1932 838917
Mob: + 44 (0) 7979 531451
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