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The British Chambers of Commerce (BCC) says its open letter to the Chancellor demanding he scrap the proposed 2p/lit increase in fuel duty has attracted "phenomenal" support from more than 700 businesses.

The government still plans to introduce the rate increase on 1 April despite increasingly tough trading conditions for haulage operators and evidence of an economic slowdown. It is estimated the tax increase will cost the  industry an additional £170m.

In a letter to Chancellor Alistair Darling, the BCC says it would welcome the opportunity to discuss an alternative pricing system which separates the way fuel tax is levied for commercial vehicles and for car users.

A BCC spokesman says almost half of the country's regional Chambers of Commerce have sent a letter to the Chancellor, including Cambridgeshire ('Fuel duty must not rise, say operators'). He says its priority is to spark a debate on alternative taxing systems: "We hope it keeps the issue on the agenda. The importance of the commercial logistics industry to the UK is vital. If we don't look at assisting them a lot [of firms] will go out of business."

The Freight Transport Association says it is commissioning a study into how an alternative scheme  might be provided. A spokesman says: "We've seen a fundamental shift in the last 12 months. This time last year the industry wasn't happy about fuel prices but it was coping. This time this year we are getting the impression that the bill has gone up so substantially it has impacted on everybody, which causes a major problem. The very least [the Chancellor] can do is scrap the 2p/lit increase."