Operators forced to find extra £1.3bn to fill fuel tanks, says FTA

Tunbridge Wells, UK: Road freight operators have had to find an extra £1.3 billion over the last 12 months to cover the rising cost of fuel, according to figures from the Freight Transport Association’s Cost Information Service.

The 12 pence per litre (ppl) rise in the cost of diesel (excl VAT) – from 99.29ppl in July 2010 to 111.21ppl in July 2011 – has caused the typical annual cost of fuelling just one 44 tonne truck to rise by a staggering £5,700.

However, the FTA stresses that the situation could have been a lot worse. In March this year FTA and its partners in the Fair Fuel UK campaign helped influence the government’s decision to defer the planned one penny above inflation fuel duty hike. Coupled with a further reduction in fuel duty of 1ppl,  this effectively saved the logistics sector around £625 million in tax alone.

With the cost of fuel having risen steadily in the last year and the impending fuel duty rise of over 3ppl looming large for January, industry is again feeling anxious about an uncertain future.

James Hookham, FTA’s MD of Policy and Communications, says: “Times are very tough right now, with rising oil costs and limited cash flow conspiring to make survival rather than growth the number one priority for many businesses operating trucks.

“Diesel is not an optional extra for commercial vehicle operators and the result of more fuel tax rises will be either destruction of companies or increased prices for customers, ultimately fuelling inflation. Many companies in the logistics sector are approaching a tipping point and simply cannot afford to absorb the high fuel costs that they are facing – the government could help by deferring the duty increases planned for January and making further cuts in duty rates now. It wants to know what it can do to help growth in the economy – here is our number one ask!”

WORLD NEWS

Cryoport buys Australian logistics provider

Nashville, Tennessee, US: Cryoport has acquired Critical Transport Solutions Australia for US$5million.It will continue to be run by the current management team but as part …

READ THE FULL STORY >

IWX Motor Freight uses Orbcomm to monitor trailers

Springfield, Missouri, US: IWX Motor Freight is using Orbcomm systems to track, monitor and control its refrigerated trailers. IWX, which hauls produce and pharmaceuticals from …

READ THE FULL STORY >

Transfesa Logistics and Euro Pool System collaborate on CoolRail

Valencia, Spain: Transfesa Logistics and Euro Pool System have begun collaborating on CoolRail routes, transporting fresh produce, in a bid to extend the services throughout …

READ THE FULL STORY >

Got milk? an entrepreneurial story

Chapel Hill, North Carolina, USA: Coronavirus has not been all bad news: Maple View Mobile milk delivery business experienced 500% growth during Covid-19. The North …

READ THE FULL STORY >

WHAT’S ON

Latest Tweets

The April issue of Cold Chain News (digital) is out now to subscribers. This issue features Cold Chain Federation's Shane Brennan answering readers' questions. To subscribe: bit.ly/3sricUE

© 2021 Global Cold Chain News | Terms of use | Privacy Policy
Commercial Transport Publishing Limited, registered in England and Wales, Company No: 6453302. Registered Office: 6 Corunna Court, Corunna Road, Warwick CV34 5HQ