The road haulage industry has warned the chancellor that planned fuel duty increases next year could push hauliers to the wall and worsen the cost-of-living crisis, writes Peter Brown.
Global pressure on oil prices, driven by conflicts in the Middle East and Ukraine, means pump prices are already volatile ahead of any tax increase.
Fuel duty remains frozen at 52.95p per litre after the Government delayed a planned 1p increase due on 1 September 2026 because of high pump prices and global supply pressures.
The rate is currently set to rise by 3p to 55.95p from 1 January 2027, followed by a further 2p increase to 57.95p from 1 March.
Freight and logistics consultant John Robertson, who works with small and medium-sized hauliers, said many were already struggling.
“Not all costs can be passed on, and for those struggling with cashflow problems it can bring too much pressure,” he said.
Logistics UK has submitted proposals to the Government ahead of Chancellor John Healey’s Budget on 28 October, calling for measures to ease sustained cost pressures and encourage investment across the sector. The organisation wants the current fuel duty rate, including the existing 5p cut, to be maintained.
Chief executive Ben Fletcher said: “Our sector is starting to drive the green shoots of economic recovery but there is still much to be done. “We are urging the chancellor to create a cost-competitive business environment that will nurture the improvements in business confidence that we are beginning to see.
“Key to this is maintaining the current rate of fuel duty, including the 5p cut. Fuel accounts for roughly one-third of a HGV fleet’s running costs, so any increase can significantly affect business viability, investment decisions and the cost of living.”
The Road Haulage Association (RHA) has also urged the chancellor to change course.
RHA managing director Richard Smith said: “A fuel duty hike is a food price hike. Almost everything on a supermarket shelf got there on a lorry. There is nowhere for additional costs to go but onto customers and onto the shelf. Where it can’t be passed on, firms go under.
“The chancellor has an opportunity to back the businesses that keep Britain moving and stop fuel duty hikes that push up costs for every household.
“Our message is clear: trucks, coaches and vans are essential to making the whole economy work. On 28 October we’re asking the chancellor to change course, scrap the planned fuel duty rises and bring in an essential user rebate for the lorries, coaches and vans this country depends upon.”
FairFuelUK founder Howard Cox said: “Brent hitting $100 is bad enough, but the real danger now is the diesel refining crunch. Diesel prices aren’t rising because oil is expensive; they’re rising because the world can’t refine enough of it.
“That’s a structural crisis, and it means UK pump prices are about to surge sharply.
“More than 40 countries have stepped in to protect drivers and keep inflation down. The UK must do the same, or we’ll sleepwalk into another cost-of-living shock.”
