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Prepare yourselves for the diesel duty hike in October
Page 4
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w by Nicky Taylor
The haulage industry is gearing up to block a rise In diesel duty, but operators should start planning now for the increase slated for 1 October, warns the Freight Transport Association.
In the April Budget, Chancellor Gordon Brown said he would delay the duty Increase of almost 1.3p/Ift because of the war in Iraq, and the consequent volatility of oil prices.
He also said that he would consider not making any Increase at all if the oil market remained uncertain.
However, despite the current volatility in the oil market, industry bodies are warning that the government seems determined to apply the increase.
The Road Haulage Association is launching a campaign in the next few weeks, as MPs return from their holidays, asking members to write to their MPs demanding the government hold off on hiking diesel duty. "It doesn't help competitiveness If the UK seeks to tax fuel duty more than any other country in Europe, and I think MPs are sympathetic with this," says RHA chief executive Roger King.
The rrA says It has already been lobbying hard for another postponement of duty rises. The organisation's chief executive Richard Turner says: "Fuel costs represent over one-third of the costs of running a truck. With the price of oil so uncertain, we would be very disappointed if the government chose to add to the Industry's cost and competitive problems by increasing our already enormous fuel bills."
The Treasury claims no final decision on the proposed rise will be made until ministers return from summer recess next week. However, Turner says operators should prepare themselves now for a rise In diesel pump prices.
• Andrew Spence, leader of the People's Fuel Lobby, has ceased haulage operations because of spiralling costs, spelling the end of three generations of haulers.
The PFL brought the country to a standstill two years ago in protest against rising fuel duty. Spence, who was based in Consett, County Durham, operated two vehicles hauling hay and straw. "Our fuel bill was absolutely astronomical, [it's risen to] over one-third of all costs," says Spence.