Friday 21st Oct 2016 - Logistics Manager

Rising fuel price adds £1.3bn to operators’ costs

Road freight operators have had to find an additional £1.3 billion over a 12-month period to cover the rising cost of fuel, the Freight Transport Association calculates.

Diesel has risen by 12p to 111.21pence per litre in the year to July 2011 pushing up the cost of fuelling a 44 tonner by £5,700.

However, the FTA reckons that the Fair Fuel campaign saved the industry about £625m in tax.

With the cost of fuel having risen steadily in the last year and the impending fuel duty rise of over 3ppl looming large for January, industry is again feeling anxious about an uncertain future.

It is now gearing up to fight plans for a 3ppl duty rise in January. FTA policy chief James Hookham said: “Many companies in the logistics sector are approaching a tipping point and simply cannot afford to absorb the high fuel costs that they are facing.

“The Government could help by deferring the duty increases planned for January and making further cuts in duty rates now. It wants to know what it can do to help growth in the economy – here is our number one ask.”