Pressure from soaring fuel prices intensified this week as the Road Haulage Association (RHA) fuel price survey revealed that hauliers are being warned to expect further increases of up to 6p/lit. With almost daily increases in diesel prices, the trade association is urging the government to scrap plans to raise duty by 2p/lit and to bring stability to fuel prices via the introduction of a regulator mechanism.
However, fears that the cost of diesel would reach an unprecedented rate of £1.50/lit this year were assuaged by the Petrol Retailers Association (PRA), which claims prices will peak this summer before dropping off. The RHA's weekly survey of members' fuel costs reveals suppliers are expecting to increase their rates again, meaning a typical artic will cost £18,000 more to fuel than it did 12 months ago. The RHA says there is little operators can do to cut their bills and believes it will be "hugely damaging" for businesses.
RHA chief executive Roger King says it is now essential that haulage buyers accept substantial rate increases: "Some have refused to give justified and essential increases because they have not budgeted to do so," he says. "We believe that such actions are short-sighted and will damage not only the hauliers but also the availability of essential, cost-effective haulage services."
He continues: "It is surely inconceivable that the Treasury would go ahead with the 2p increase planned for 1 October and we call on the Chancellor to abandon that increase now. In addition, we repeat our call for all parties to support the amendment to the Finance Bill, which calls on the government to bring some sense of stability to the price of fuel through a regulator mechanism and to recognise the plight of the haulage profession."
But PRA director Ray Holloway says diesel prices will ease towards the end of the year, when the opening of three refineries in India and Asia will handle demand: "This summer's price will reflect the US economy, but by July the peak will level off. And looking forward to the next two or three years [the price] will be much better."