The RHA has written to Chancellor Rachel Reeves requesting an urgent meeting, warning that a 16.25% spike in bulk fuel prices over the past seven days poses a serious risk to the UK economy, household costs and the viability of haulage businesses.
The warning comes as the price of oil rocketed yesterday (9 March) to over $100 (£73) for the first time since Russia’s full-scale invasion of Ukraine in 2022.
However, Reeves has so far rejected calls by opposition MPs to reverse a planned 5p rise in fuel duty in September.
The Conservatives plan to force a Commons vote today over the rise, but Reeves said the competition watchdog had been ordered to keep a close eye on fuel pump prices and domestic heating oil costs to prevent wartime profiteering.
In its letter, the RHA is urging the government to introduce an immediate cut in fuel duty of at least 5p and reverse the planned increase due in September, reduce VAT on fuel, strengthen the UK’s energy security and refining capacity, and take further action to address late payment practices through standard 30-day terms.
Independent analysis shows that a 5p fuel duty rise could significantly increase household living costs and add further inflationary pressure.
Road haulage underpins 81% of all UK freight movement, including 98% of food, agricultural and consumer products. With operators working on margins of less than 2%, the current fuel price surge is pushing many businesses to the brink, the RHA is warning.
These combined pressures compound a wider set of challenges facing HGV, coach and van operators ahead of further domestic changes from April, rising operating costs and continued investment uncertainty following the Autumn Statement.
Richard Smith, RHA MD said: “The road transport sector is the backbone of the UK economy, and when fuel prices spike, the impact is felt on supermarket shelves and household budgets across the country.
“Our members are operating on wafer-thin margins and have nowhere to absorb these costs. We are asking the government to freeze planned fuel duty increases, act on energy security, and meet with us urgently. Time is of the essence.”
The RHA has called on decision-makers to engage collaboratively with the sector to address these challenges and prevent further economic damage.
