The average price of diesel has reached £1.56 per litre amid soaring oil prices due to Russia’s invasion of Ukraine.
03 March 2022
Hauliers have urged the Government to take action on record fuel prices which they say are “wiping out” their profits.
The average price of diesel has reached £1.56 per litre amid soaring oil prices due to Russia’s invasion of Ukraine.
To ease the impact on the logistics industry, trade body the Road Haulage Association (RHA) urged ministers to delay upcoming changes to the use of untaxed red diesel by 12 months.
It called for fuel duty to be frozen for a further two years, and greater flexibility with the Apprenticeship Levy to help address driver shortages.
The organisation also wants more lorry parking facilities and the continuation of skills bootcamps to train the next generation of drivers.
RHA executive director for policy and public affairs Rod McKenzie said: “Ours is a low margin industry – the average haulage business makes an annual profit of 3%.
“Put another way, the weekly profit of a truck may be £80 but the increase in the price of fuel can equate to between £77 to £87 per week per truck, thereby completely wiping out any potential profit.
“Of course, hauliers can put up prices. That will add to the general escalating pressures on inflation for everyone.
“That’s bad for our businesses, some of whose existence is now threatened, and indeed for all of us in the UK as prices rise.
“But the Government can, and we think should, do something about it.”
