The assumption that rising fuel costs can simply be passed on to customers is not reflected in reality, according to the latest research from the RHA.
The association said its Fuel Challenge Survey highlights the growing strain on commercial vehicle operators, with only 10% of operators reporting that they are able to fully pass increased fuel costs on to customers, and another 65% saying they can only pass costs on partially.
The survey also found that more than 40% are unable to pass on any increases at all, due to fixed contracts or customer resistance.
Richard Smith, RHA MD, urged the Chancellor to introduce an Essential User Rebate for haulage, coach and van operators as fuel costs have surged by around 35% since mid-February.
He said: “That gap is being absorbed by operators, and for many this is now a question of how long they can keep going.
“We’re hearing directly from businesses delaying investment, pausing recruitment, and in some cases questioning their long-term viability.
“Commercial vehicle operators are not discretionary users of fuel, which is why we’re calling for an Essential User Rebate that would provide immediate support, protect jobs and help keep supply chains moving.”
The RHA is also calling on industry stakeholders to support its ongoing MP letter-writing campaign, encouraging operators and supply chain partners to engage directly with their MPs to highlight the urgent need for intervention.
Last week RHA reported that, compared to mid-February; a typical van with an 80-litre tank costs £150 to fill, up from £110 - a £40 increase.
A coach with a 300-litre tank has gone from £425 to £575 - up roughly £150, whilst the cost for HGVs with a 600-litre tank has gone up roughly from £850 to £1,150 – an extra £300 per vehicle every single fill.
The RHA is calling on the government to ensure:
- an immediate Essential User Rebate
- no increase in fuel duty in September
- no link between fuel duty and inflation from April 2027
- fair payment terms to support cashflow across the sector
More information can be found on RHA’s Essential User Rebate campign here
