Hauliers demand instant tax cut
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1 SECOND increase in wholesale dery prices this week prompted he Road Haulage Association to demand an early cut in fuel tax. buliers are also being encouraged to seek higher rates.
Last week's 1.1p increase in he price of a litre of dery was allowed on Monday by mother 1.1p increase which all )f the oil companies blame on ligher interest rates, the fall in 3terling and the rising price of lerve on the spot market.
Spot market prices for dery low exceeed those for petrol, 3nd retail dery in some parts of he country now costs around C2 a gallon and is more expensive than petrol.
According to the Road Haulage Association, the 10p increase in the price of a gallon of bulk dery this year has added 1.1 per cent to hauliers' fuel costs this year, nearly half the increase in the whole of last year.
While it cannot give its members specific guidance on the rates they should charge their customers, it is advising them that they should look closely at the rates they do charge.
Monday's increase prompted RHA director-general Freddie Plaskett to write to Chancellor of the Exchequer Nigel Lawson demanding a cut in dery tax as soon as possible, preferably before the March 19 Budget.
He said that the fall in the value of Sterling meant that the Government had more North Sea oil revenue at its disposal.
"It would be simple justice .
if we were to accept that in this instance the transport industry has a case for a reduction in the tax which, in effect, is finding its way into your department's pocket twice."
Mr Plaskett said the dery in crease was causing operators "deep and widespread" concern, and said: "Haulage is a precarious industry at the best of times, depending as it does on the keenest competition and very narrow margins.
"Haulage firms will be unable to absorb these extra costs. They must either pass the increase to their customers or go out of business. Either way the Government loses.