RHA warns fuel rises mean
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crunch time for hauliers
CM COVER STORY christopher.wattonrarbi.co.uk joanna.bourke(arbi.co.uk THE ROAD HAULAGE Association (RHA) has warned haulage customeers that they must pay a higher price in light of what they describe as a "cost crunch for hauliers-.
According to the association's weekly fuel price survey, the national average price of diesel has risen by 2.39p/litre for the week ending 8 April. to an average of 100.49p/litre, before VAT Just nine weeks ago. in early February. hauliers were paying an average of 91.47p/litre.
Jack Semple. director of policy at the RIIA, says of the rise: "Customers have to recognise that they need to pay their hauliers more.
"This level of increase has to be accounted for. This is a [5,111)0 per year increase in running costs [per truck] over nine weeks. That is a lot of money for hauliers and a lot of them are afraid to go to their customers to ask for an increase."
Phil McCabe. spokesman for the Forum of Private Business. which counts hauliers as well as other businesses as members. says that the rise in fuel prices could undermine the LIK's recovery from recession. "It is getting to a situation where it is not viable to run a business with major supply and delivery costs because you will lose money."
He adds: "We are concerned for our members, but the wider picture is that we are emerging out of recession — the nature and quality of that recovery all depends on the ability of businesses to grow by investing in their businesses."
Last month the government staggered a 3p/litre increase in fuel duty in its Budget. The first Ip/litre rise went through on 1 April, with a further lp/litre rise scheduled for 1 October and a further 0.76p/litre rise due on 1 January 2011.
Compounding the rise is the removal of the 20p/litre duty differential on hio-diesel, with suppliers having to cover the cost of the rise used in the 50% blend diesel sold at fuel pumps.