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Diesel prices have risen by 34% in the past year, and by 14% since the beginning of 2008. With further prices rises on the horizon, it is hardly surprising to see hauliers protesting again this week. Fuel represents more than a third of the costs of running a truck, and while some hauliers are able to pass those extra costs on, some customers are reluctant to meet the soaring prices. However, the tight margins faced by operators means they are unable to absorb the costs themselves.

According  to the Freight Transport Association (FTA), the government can't keep ignoring the problem. Chief economist Simon Chapman says that while the government can do little to influence the world oil price, there is nothing to stop it reducing the duty on diesel down to EU average levels of 25 pence per litre from its current level of 50.35 pence per litre. "Diesel is the fuel of industry's supply chains," he says. "A decisive cut in duty on diesel would provide welcome relief for businesses and consumers alike. It would take the heat out of the sky-high price that the economy is struggling to live with."

And it's not just soaring fuel prices that are putting the squeeze on British hauliers. According to the latest Department for Transport (DfT) figures, more foreign trucks are entering Britain than ever before. The number of foreign trucks entering Britain in 2007 was 1,719,000, up  7% on 2006, says the DfT. In contrast, the number of UK trucks travelling overseas has reached a 14-year low of 400,000. UK hauliers now account for just 19% of all haulage between Britain and the rest of the Continent.

Chapman says one of the main reasons for foreign hauliers taking more business is that they have access to cheaper fuel and pay lower wages. "These vehicles are able to take advantage of the competitive edge that low-taxed foreign diesel purchased in France and Luxembourg is able to give them when competing for work with UK-based hauliers."

The Road Haulage Association (RHA) warns that things could get even worse for UK hauliers after the European Parliament voted this week to press ahead with the opening up of the domestic haulage markets of Euripean UNion (EU) countries to foreign operators. RHA chief executive Roger King says: "In the UK, we pay twice the diesel duty of the rest of the EU, have a much tougher enforcement regime and a much better road safety record. Yet we are already losing not only international work but also domestic loads to foreign trucks."