Duty rises ‘add £1,200 in costs’
January 1st 2011 The Freight Transport Association has condemned the latest increase in fuel duty as a New Year’s present from the Chancellor that will leave the freight industry with a £95 million hangover.
The increase of 0.76 pence per litre from January is the third rise since April 2010 and will push diesel prices to within four pence per litre of the all-time highs reached in July 2008 when oil prices were at $145 per barrel.
Simon Chapman, FTA’s chief economist, said: “Diesel is not an optional extra for industry. It is essential to keep shops stocked and businesses supplied with materials.
Rises in fuel commodity prices have already left operators facing diesel prices nine pence per litre higher than a year ago – adding £3,800 per year to the bill of running an articulated truck. This latest fuel duty increase, together with those previously introduced last year will add a further £1,200 per year.”
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