RHA reiterates call for fuel duty rebate to tackle ‘unsustainable’ costs

The Road Haulage Association (RHA) has repeated its call for an essential user rebate to allow commercial vehicle operators to claim back part of the duty they pay on fuel, in the context of continued price hikes which it warns are ‘unsustainable’.

Average diesel pump prices have now risen beyond the 190p per litre mark, according to RAC Foundation figures, while petrol prices are approaching 160p per litre.

The move follows the Liberal Democrats’ stated intention to push for a temporary 10p per litre fuel duty cut, to help businesses and consumers alike manage the soaring cost of fuel.

“While developments such as a ceasefire are welcomed and may stabilise markets, prices remain significantly higher and the pressure on operators continues,” said RHA managing director Richard Smith.

“The message we are still getting from operators is clear: the pressure is immediate.

“Fuel costs have risen sharply, with many businesses reporting increases of over a third in a short space of time. This is unsustainable.

“That’s why we are calling for an essential user rebate for HGV, coach and van operators.

“These sectors are essential users of fuel. They keep supply chains moving, support communities and underpin the wider economy. Around 80 per cent of goods are moved by road, and commercial vehicles contribute over a third of all fuel duty receipts, yet they are among the most exposed to rising fuel costs.

“In simple terms, an essential user rebate would provide targeted support for the vehicles that keep the country moving, for example, allowing operators to reclaim part of the duty paid on fuel.”

Mr Smith highlighted how other countries were already taking action.

“Across Europe, governments such as France, Spain and Italy allow commercial operators to reclaim part of their diesel duty, while others have introduced temporary fuel tax cuts or targeted support for transport operators during periods of high prices.”

He also reiterated the RHA’s call to cancel the increase in fuel duty planned for September, and the plan to link fuel duty to inflation from next April – and urged fairer payment terms to support cash flow across the sector.

“We have already set out this case to government and will continue to press it over the coming days as this matter is urgent,” he concluded.