Hauliers lose on diesel hike
Page 13
If you've noticed an error in this article please click here to report it so we can fix it.
• Rising diesel prices are adding hundreds of pounds a week to hauliers' fuel bills and losing them valuable contracts as customers refuse to pay extra to cover the cost.
Charles Ball, partner at Thameside Transport at Shoeburyness in Essex, believes his company has recently lost two contracts, both worth about £5,000 a month, because customers refused to pay more to cover rising fuel bills.
"We have tried four times in the past year to put up costs to customers and on all occasions they have refused. It is becoming a very tight struggle," says Ball.
In the past four years the price of diesel, including duty, has risen by 26%. In recent months the pound has weak ened against the US dollar and diesel prices have risen by 2p/litre over the past month.
Oil market analyst John Hall says the latest diesel price rises are due to a combination of the weak pound and increased seasonal demand. He predicts diesel prices will average out at around 34-35p/litre next year.
Rob McHugh, director of Owner Operators UK, says hauliers will have to persuade customers to pay more or face going out of business.
"You can only absorb so many price rises," he says. "Hauliers will have to market price rises to customers and explain exactly why costs are rising."
The Road Haulage Association is pressing the Government to freeze or cut the amount of duty paid on fuel.