RHA: Hauliers cannot take strain of higher prices

Tuesday, 27, May 2008 12:00

Lorry firms should not be left to bear the burden of rocketing fuel prices, Road Haulage Association chief executive Roger King believes.

"The haulage industry cannot possibly absorb the impact of surging oil prices," he said.

"Only the government is gaining from these increases, through its VAT. It already charges twice the rate of duty on diesel as the rest of the EU and it is having an income bonanza from the new increases. It is surely inconceivable that the Treasury would go ahead with the 2p increase planned for October 1st and we call on the chancellor to abandon that increase now.

"The government says that fuel duty has fallen slightly behind inflation - by about 11 per cent - since 1999. Since that reference year, the price of diesel, before tax and duty, has risen by almost 500 per cent.

"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 particular plight of the haulage profession."