The RHA has renewed its call for an Essential User Rebate for transport operators, arguing that recent government support measures do not go far enough to offset the impact of rising fuel costs on the sector.
In an editorial published this week, RHA MD Richard Smith said a 35% increase in fuel prices since February had placed significant pressure on haulage and and van operators, many of whom are unable to pass the full cost increases on to customers.
Smith pointed to Office of National Statistics (ONS) figures published last week which show that 40% of trading businesses reported an increase in the prices of goods or services purchased in April 2026, the highest proportion recorded since December 2022.
According to the RHA, only one in 10 operators responding to a recent survey said they were able to fully recover higher fuel costs from customers.
Smith said: “This is a here-and-now issue that demands substantial government intervention to support the haulage, coach and van operators who underpin our economy and who simply can’t keep on absorbing vastly inflated prices.”
The RHA is calling for the introduction of an Essential User Rebate, which would provide targeted fuel duty relief for commercial transport operators.
The association has been lobbying for this for several years as a way of helping operators manage fuel price volatility while supporting supply chains and reducing inflationary pressures.
The RHA is also continuing to lobby ministers over payment practices in the supply chain. It wants payment terms reduced to 30 days, rather than the 60-day period currently under consideration by government, arguing that faster payments would help ease cashflow pressures for transport businesses dealing with rising operating costs.
The latest call by RHA for an Essential User Rebate follows a series of government measures announced in response to higher fuel prices, including an extension of the fuel duty freeze until December and a one-off HGV Vehicle Excise Duty (VED) holiday from July.
While it has welcomed the extension of the duty freeze, RHA wants the measure to become permanent and is urging ministers not to proceed with plans to raise fuel duty in line with inflation from next year.
The trade body also argued that the temporary VED holiday would provide only limited relief compared with the impact of higher diesel costs, particularly for operators running large fleets.
Smith highlighted the government’s recent decision to cut duty on red diesel by 36% to 6.48ppl from 15 June until the end of the year, which has been welcomed by the National Farmers Union (NFU).
Red diesel, which is taxed at a lower rate than standard road fuel, can be used by certain sectors including agriculture, rail and some specialist vehicle operators.
Smith said the government’s willingness to provide sector-specific support demonstrated that a similar approach could be adopted for road transport operators.
Noting that the NFU described the duty cut on red diesel as a “well-targeted measure”, Smith said: “We agree with them. It is a well-targeted measure, and it shows the art of the possible.
“It’s why we continue making the case for an Essential User Rebate,” he added, as he called on operators to write to their MPs to urge them to support the measure.
More information on the RHA’s Essential User Rebate campaign can be found here.
