The current price of diesel is adding an extra £300 per truck each week and only one in 10 hauliers can pass the increase on, according to the RHA.
The sky-high fuel prices were described as “pretty scary” by one operator and are driving increasing numbers of companies out of business, with the vast majority unable to pass the costs on in full.
This week, the government announced that diesel and petrol prices will now appear on Google Maps to help drivers find cheaper fuel, a move campaign group FairFuel UK branded “pathetic” and “insulting”.
Speaking to BBC Radio, Cumbria-based bulk tipper firm Pelleymounters said hauliers local to the Millom firm had already gone bust.
“It’s pretty scary to be honest,” said owner Andrew Park. “It does look quite bleak and it’s a bit worrying when you are trying to work out the figures and you are trying to get a bit of help from your customers and your suppliers, but they have to be able to pass it on to someone else.”
RHA policy lead James Barwise said the industry had been hit by a perfect storm of issues since the start of the decade, first with the pandemic and then the war in Ukraine: “By the time you get to this year, perhaps there was just a quiet note of optimism that we might be turning a corner, but with the conflict in Iran unfortunately it’s been the opposite,” he said.
“Realistically, diesel now represents a third of the cost of running a commercial vehicle. As a ballpark figure fuel now costs around £300 per week extra per truck.
“If you imagine a haulier with dozens and dozens of trucks, you can see how that figure gets out of control with just a marginal increase in diesel.
“So, as you get to around this £2 per litre figure we know that’s not sustainable and that’s why the Chancellor needs to take action now.”
Chris Welch, CEO of Welch Group, said the cost of diesel was proving that its decision to start using electric HGVs was the right one.
“We’re already seeing substantial savings on energy costs compared with diesel, and every increase at the pump makes the economics of electrification more compelling,” he said.
“But the opportunity goes much further. By opening our charging hubs to other operators, we can spread the cost of infrastructure and make our own electric trucks progressively cheaper to run.
“Our internal modelling suggests the savings could become increasingly significant as our fleet and charging network grow.”
Ryan Yu, VP at products at internet of things firm Samsara, cautioned that simply switching to electric trucks was not realistic for many firms, but that now might be the time to explore a more targeted approach: “Overhauling a fleet requires significant investment, and without reliable charging infrastructure along the routes hauliers actually operate, the economics may not stack up,” he said.
“Rather than treating electrification as an all-or-nothing decision, operators should start with targeted pilots on routes where vehicle utilisation, charging availability and fuel savings offer the clearest return on investment.”
The RHA is calling for the government to introduce an essential user rebate, scrap plans to increase fuel duty and not to link it to RPI from April, moves backed by FairFuel UK, which described the Google Maps announcement as “a weak, cosmetic gesture that ignores the real cause of high pump prices”.
The group’s founder Howard Cox said: “This is tinkering at the edges. Drivers don’t need an app – they need a government that stops treating them like tax cash cows.
“While more than 40 countries have stepped in to help their motorists with duty cuts, VAT reductions or direct support, the UK offers a pathetic Google Maps feature and calls it action.
“It’s insulting. Pump prices are high because taxes are high, and the UK isn’t self-sufficient in road fuel production.
“Both are entirely within the government’s control.”
