Road haulage companies struggling to cope despite Fuel Duty cuts

News Article - 25 May 2011
Category: Business

The UK's road haulage companies are struggling to control running costs despite the recent cuts to Fuel Duty by the Coalition Government.

Fuel Duty was reduced by 1p per litre along with a fair fuel stabiliser but regardless of this the duty on fuel in the UK remains one of the highest amongst the EU nations.

For example, an articulated lorry for a haulage firm averaging 7.5 miles per gallon, covering 70,000 miles a year will now cost £48,775 per annum in fuel costs alone.

While fuel increases by as little as one penny a litre may not sound a lot, an extra £424 a year is added to the cost of keeping a haulage truck on the nation's roads. Pump prices show no sign of let up for road haulage companies as diesel prices reached an all-time high of 140.43p last month. Meanwhile even bulk prices for haulage firms are now at least 114.93ppl exc. VAT, increasing the pressure on businesses' cash management.

Daniel Parry of DeliveryQuoteCompare.com said: "We have seen that some of the road haulage firms who work with us have been obliged to offset these fuel rises with an increase in quotes.

"It would be beneficial to both hauliers and the economy in general in the UK if fuel prices took a downwards trend. We can only wait and see what effect measures such as the fair fuel stabiliser will have in the future."

The issue has also reached its tipping point in Ireland where the Irish Road Haulage Association has reported potential strike action by withholding VAT and pay related social insurance payments in protest at crippling fuel prices.

Vincent Caulfied, president of the Irish Road Haulage Association, said: "Rising fuels are crippling haulage companies both in the UK and here in Ireland.

"Over 250 road haulage companies failed or ceased trading in 2010 and almost as many are currently on the brink of closure."

Article keywords: Road haulage, Fuel Duty, Coalition Government, fuel increase, cash management, Daniel Parry, DeliveryQuoteCompare.com, fair fuel stabiliser, Irish Road Haulage Association, Vincent Caulfied

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