Hauliers are bracing for further fuel price rises following US President Donald Trump’s remarks about restricting diesel exports, with businesses complaining that the UK government is sitting back and pocketing a VAT windfall.
One transport firm told Motor Transport its customers had “no room for manoeuvre” and frustration was beginning to kick in.
Soaring diesel costs have prompted the RHA to demand a fuel duty cut at the Budget next month, as well as the introduction of an essential users’ rebate to protect jobs and companies.
Jamie Reid, director at freight forwarder Baxter Freight said: “Already-thin haulage margins leave little room to absorb the increase, so it moves down the chain as higher fuel surcharges on UK and UK-EU road freight.
“Diesel is the single biggest variable cost in road freight, so when it climbs like this, there is nowhere for a haulier to hide.
“Margins in UK haulage are already thin, and a sustained price rise doesn’t get absorbed.”
Simon Smith, CEO of charging infrastructure firm Voltempo, said the president’s comments this week threatening to restrict US diesel exports should act as a wake-up call for fleet operators:
“Diesel prices and supply are exposed to decisions being made thousands of miles away, whether that is geopolitics, conflict or government intervention,” Smith said.
“For commercial fleets, that strengthens the case for electrification. Electricity can be generated domestically, bought on long-term contracts and, with the right charging infrastructure in place, gives operators far greater control over one of their biggest operating costs.”
Andrew Cook, owner of Worcester-based Andrew Cook Transport, said he was now paying nearly 50p a litre more than six months ago and people were increasingly unhappy with the situation: “They are struggling and it needs somebody to take a stand and lead,” he said.
“Customers are being alright, they are sympathetic but they have no room for manoeuvre as well. It’s the knock-on effect.
“People are annoyed and are very frustrated with it,” Cook continued. “Donald Trump started it, but the government is making plenty of money out of it and fuel companies are as well.”
Earlier this week, campaign group FairFuelUK, said there was “opportunistic profiteering at the pumps” and the government had failed to protect drivers.
“The Treasury is quietly pocketing a VAT windfall from every inflated litre,” said founder Howard Cox.
“Retail margins have doubled since 2021 while oil prices have fallen – it’s daylight robbery.”
