Fuel prices draining the Freight Industry
The result of rising diesel prices over the past year has resulted in the road transport industry forking out an extra £1.3bn for fuel in a recent calculation by the FTA.
In the past year there has been a 12ppl rise in the cost of diesel, so if we take this into equation, annually
the cost of fuelling one 44- tone truck will now increase by £5700.
Fuel has been a subject of great debate for some time, the transport industry usually bears the brunt of over
calculation of fuelling, green issues and ethical business matters. Although companies must engage in environmentally friendly business options, by stretching monetary resource it could make it harder for the logistics sector to actively seek and invest fuel cutting greener options
Fuel inflation is likely to be on the horizon, according to James Hooker, FTAs head of Policy and Communication stated,
‘Many companies in the logistics sector are approaching a tipping point and simply cannot afford to absorb the high fuel costs they are facing. If the Government wants to know what it can do to help growth in the economy; here is our number one ask; defer the duty increases planned for January and make further cuts in duty rates now’.
What makes it difficult to relieve pressure on the transport industry is that it is often a victim of Government, Media and the public. However without a thriving network of logistical operations, we will never be able to replenish our frail economy in the foreseeable future.