Switch to foreign dery
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by Karen Miles • International hauliers are switching to foreign-bought fuel to escape the Chancellor's New Year duty increase on diesel.
After nearly two weeks of the extra tax, operators are even refuelling in Germany before returning home. This was previously considered unthinkable because of the high taxes on German fuel: but after the Budget, a 400-litre tank of German diesel is around £25 cheaper than UK-bought dery (see panel). The duty hike has also pushed the Road Haulage Association to suggest that operators can make money over and above cross-Channel costs if they pick up unaccompanied trailers in Calais and refuel at the same time.
Operators say the Chancellor's two November Budgets have made UK fuel over lp a litre more expensive than Continental fuel.
Kenneth Clarke put on 3p a litre in the main November Budget and then another lp a litre payable after New Year's Eve after his defeat over higher VAT on heating fuel.
The two increases took excise duty on UK diesel to 31.32p a litre—up from the preBudget level of 27.7p a litre.
But UK Customs this week warns that the bonanza will not last as the French authorities move to increase their own duties. It says other Continental countries will also follow.
Meanwhile, Seafield International says it could save up to £6,000 a year on its 30 trucks if it continues to benefit from the UK-French difference and Canterbury-based Garretts says it is saving over £48 on each 600-litre tank.
But Customs is warning that hauliers must not import Continental fuel in bulk or in belly tanks without paying duty in the UK. It is advising that hauliers in doubt should contact UK Customs offices.
L.1 For details of the latest UK diesel prices see Operator's Handbook, page 18-19.