FairFuel lobbies MPs as costs hit all-time high
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By Christopher Walton THE CAMPAIGN to cut fuel duty took to Parliament for National Fair Fuel Day yesterday (7 March) as new igures show that the price of fuel has sent running costs spiralling, outstripping average rates.
With the Budget just two weeks away, FairFuelUK supporters, along with the Road Haulage Association and Freight Transport Association (FTA), were set to enter Parliament, just before CM went to press, and exercise their right to meet their MP.
The combined lobbying comes as the FTA revealed that operating costs in the 12 months to 1 January rose 3.7% to an all-time high, with fuel now topping 40% of average running costs. Without the impact of fuel, average running costs rose 2.5%. In contrast, average domestic haulage rates rose just 3.1% in the same period – with 46% of operators telling the FTA they had not increased haulage rates at all in the same period.
The average price of diesel rose 6.3% in the 12-month period.
Bruce Goodhart, research analyst at the FTA, says: “The high price of diesel is the number one concern keeping hauliers awake at night. Fuel now represents around 40% of annual operating costs, compared to around a third just three years ago. While operating costs have now reached an all-time high, hauliers continue to face pressure from customers not to raise their haulage rates.
“As a result, balance sheets remain fragile and hauliers vulnerable during this period of weak economic activity.” Meanwhile, a survey of 703 transport managers conducted by consultancy irm 3t Logistics found that two-thirds (66%) of respondents said rising fuel prices had forced up their prices.
MD Steve Twydell says: “Most companies simply can’t reduce their prices any more without severely [affecting] service.”