RHA: road transport firms ‘on the brink’ due to fuel prices
Only around four in 10 road transport operators (39 per cent) questioned in a recent Road Haulage Association (RHA) fuel survey say they are confident of surviving in the context of the recent significant fuel price rises, the trade group has warned.
Of the 550 responses received as part of the survey, 90.6 per cent were from SME fleets, the RHA said. 84 per cent of respondents reported reduced margins, and 56.8 per cent complained of cashflow pressure.
The association reiterated its call for the government to introduce an essential fuel user rebate, as well as advocating a white diesel fuel duty cut, following the recent reduction in duty for red diesel, the cheaper fuel used for off-road machinery like tractors and generators.
“Just 39 per cent of businesses are confident they can keep going under current pressures before it becomes unsustainable,” said Richard Smith, RHA managing director.
“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 ten operators told us a rebate would reduce the need to raise prices for customers.”
He added: “With firms fearing the worst, eight in ten told us their already razor-thin margins are being squeezed, with rising fuel prices creating cashflow problems. 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 urging the public to back its campaign for an essential fuel user rebate by contacting their MPs. Looking further ahead, it is additionally calling for an indefinite delay to any further fuel duty increases, and for plans to link fuel duty to the Retail Prices Index (RPI) from next April to be scrapped. It has written to the chancellor and ministers urging a meeting to discuss these issues.
