Only four in 10 transport operators are confident they can survive the current onslaught on fuel prices as the Iran conflict drags on.
A survey by the RHA found prices have soared by 35% since the war began three months ago, leaving many hauliers fighting for survival.
Average diesel prices are more than 182p per litre and motorway service areas are pushing almost 200p, according to latest RAC figures.
The RHA said an essential user rebate was now crucial as a targeted measure that would help transport firms cut the cost of moving goods and ease the pressure forcing prices up for customers.
RHA MD Richard Smith said: “Just 39% of businesses are confident they can keep going under current pressures before it becomes unsustainable.
“That is a stark picture of the conditions transport operators are currently working in.
“We need the government to act now. We are calling for an Essential User Rebate to help businesses in our key sector reduce the cost of doing business and relieve inflationary pressure.
“Seven in 10 operators told us a rebate would reduce the need to raise prices for customers.”
The survey also found eight in 10 operators were struggling with already razor-thin margins and rising fuel prices were now creating cashflow problems.
Smith added: “This is an issue demanding immediate action. The measures we’re calling for would provide respite and give businesses the confidence to look ahead without the spectre of insolvency hanging over them.”
The RHA is also calling for fuel duty increases to be delayed indefinitely and to scrap plans to link fuel duty to RPI from next April.
