Sky high fuel prices pushed inflation up to 3.5% in September, with as many as six in 10 transport companies now anxious about the impact on their business.
The Office for National Statistics (ONS) said transport, particularly motor fuels, made the largest upward contribution to the monthly change in inflation, which was sitting at 3.1% in August.
Campaign group FairFuelUK said the surge in the consumer price index was evidence that high fuel prices drove inflation throughout the entire economy and that the spike was avoidable.
“It was predictable, preventable and made worse by years of political complacency over transport costs,” said founder Howard Cox.
“When diesel prices surge, inflation follows. Trucks, vans and commercial vehicles are the backbone of the British economy.
“When the government allows fuel costs to spiral while continuing to treat motorists as cash cows, every household pays the price.”
Analysis of the ONS data by ParcelHero showed worry over fuel prices had jumped across UK industry, but transport and storage firms were the most acutely exposed.
It found 59.8% of businesses in the sector were now ‘very concerned’, a 16.8% increase from the previous month and well above the 38.2% of all UK firms reporting the same level of concern.
David Jinks, ParcelHero head of consumer research, said it was no surprise transport companies were the most alarmed: “What stands out is the intensity: nearly six in 10 are now very concerned, compared with just over four in 10 in August,” he said.
“Retailers are less exposed on paper, but they are the businesses that ultimately feel hauliers’ and couriers’ fuel costs through delivery rates and surcharges.
“Shoppers and small businesses should expect pressure on delivery pricing, and should compare carriers carefully rather than assume rates will hold.”
Ben Fletcher, Logistics UK CE, said the ONS figures threw into sharp relief the pressure being placed on hauliers.
“The rapid rise in fuel inflation, driven by the conflict in the Middle East, has a direct effect on logistics operating costs, which will have a knock-on impact on the prices people pay in the shop,” he said.
“Fuel, energy, tyres, maintenance, vehicles, insurance and labour are non-negotiable charges and, while operators will attempt to absorb some increases through lower margins and improved efficiency, much of this increase will ultimately drive further inflation across the wider economy.”
Road transport platform SNAP said the record £2 per litre price of diesel was placing particular pressure on European haulage firms, which were already battling soaring maintenance and insurance costs, driver shortages and regulatory requirements.
Nick Long, SNAP head of commercial, said: “The haulage industry is the backbone of Europe’s economy, but the financial pressure facing operators is becoming increasingly difficult to ignore.
“When diesel reaches £2 per litre and businesses are potentially spending hundreds of pounds more per vehicle every week, the impact on an entire fleet can be enormous.
“For operators already working with narrow margins, these additional costs can make the difference between a profitable journey and a loss.”
IAM RoadSmart, the UK road safety charity, joined calls for the Chancellor to postpone a fuel duty rise ahead of the Budget next week: “Many businesses are struggling with record high diesel prices, and the planned increase in duty pencilled in for the New Year will be a kick in the teeth for firms and fleet managers already under intense pressure as costs mount,” said IAM policy director Nicholas Lyes.
