UK fuel prices continue to affect the freight industry

LGV running costs have hit an all-time high due to the soaring cost of fuel, according to the latest research by the Freight Transport Association (FTA).

Simon Chapman, FTA chief economist, says: “The high price of diesel is the number one concern keeping hauliers awake at night.  Fuel now represents around 40% of annual operating costs compared to around a third just three years ago.”

He adds that the despite high operating costs, hauliers are under increasing pressure from customers no to raise rates and are seeing overall levels of activity fall as the economy continues to struggle. “As a result, hauliers are struggling to keep their balance sheets in the black, with a growing number having to close their gates permanently,” warns Chapman.

The FTA says problems for UK operators are compounded by the duty that the government applies to diesel: at 57.95ppl, UK diesel duty is, on average, 24ppl higher than the rest of Europe. This puts UK carriers at a significant cost disadvantage to their foreign counterparts when competing for domestic haulage business in the UK, because a foreign carrier entering the UK with a full tank of fuel has the ability to undertake a week’s work using low-cost fuel purchased on the Continent.

For more information
www.fta.co.uk/media