Above-inflation fuel tax hike will leave industry with £375m bill

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The Fair Fuel UK campaign has estimated that the above-inflation fuel duty hike planned for 1 April will cost the industry a minimum of £375 million.

The Office for Budgetary Responsibility is yet to announce its forecast for inflation, likely to be between three and five pence per litre. A 3ppl rise would cost a vehicle operator with a fleet of ten heavy goods vehicles £14,000.

James Hookham, FTA’s managing director of policy, said: “Rocketing fuel prices have such a huge impact on businesses and motorists, but it is within the government’s gift to loosen the noose from around road users’ necks and give us all some breathing space.”

The Fair Fuel UK campaign is backed by the Freight Transport Association and the Road Haulage Association, and is supported by more than 8,000 petitioners including hauliers, business owners, motorists and the general public.

Peter Quantrill, director general of the  British International Freight Association said: “We know these are difficult times for the British economy but this draconian duty rise, which will have to be passed along the supply chain to the end consumer, coming as VAT rises to 20 per cent, inflation takes off and job worries rise, can only hurt our fragile recovery. The government must abandon this rise and put in place a fuel price stabiliser to bring some balance to the issue and enable our members to better manage fuel costs and remain competitive internationally.”

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