The Freight Transport Association says the Chancellor’s decision to defer the 2p a litre increase in fuel duty until October is welcome, bearing in mind this week’s increase in the price of oil to $110 per barrel and forecasts that it will rise further. However, it argues that any duty increase should have been put off for at least a year while the market remains so turbulent.
A six month deferment will save industry some £140 million. However, says the FTA, since January 2007 the transport industry has suffered fuel price increases of £2.5 billion as the bulk price of diesel has increased from 74p per litre to the current 92p per litre.
Geoff Dossetter, director of external affairs, said: “The high price of fuel impacts on not just the transport industry but the whole of UK industry as world prices go through the roof. In turn these increased prices must be passed to consumers. For the Chancellor to have added to this pain by seeking further taxation would have been unthinkable.