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Delay to 2p/lit fuel duty rise receives cautious welcome
Page 16
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by David Harris THE DELAY TO the rise in fuel duty unveiled in the Budget last week has been given a qualified welcome by hauliers, although many say the measure is a small step where a large one was needed.
The scheduled 2p/lit increase in duty has now been delayed until October, although the rising cost of oil means that fuel continues to increase in price at the pumps.
The delay in duty will save the industry around £140m, says the Freight Transport Association (ETA), although the hulk price of diesel has risen from 74p to 92p/lit since January 2007.
Roger King, chief executive of the Road Haulage Association (RHA), says: "It is encouraging to know we have a Chancellor who has listened to what we have to say. However, this deferment is essentially a short-term fix."
King points out that if the October increase in duty goes ahead, it will be followed by another proposed rise of 1.84pflit in April 2009.
The RHA argues that a lowering of the diesel price for hauliers is crucial if UK operators are to be allowed to compete fairly against foreign companies, and says its campaign to stop further increases in fuel duty will continue.
The ETA also welcomed the decision to delay the increase in duty, but adds "any duty increase should have been put off for at least a year while the market remains so turbulent".
Geoff Dossetter, the FTA's director of external affairs, says: "Increased prices must be passed to consumers."
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