The planned price increase of diesel in the UK next week has been condemned by the freight industry as being a £95 million (US$146.6m) new year fuel tax headache.

The Freight Transport Association (FTA) said the increase of 0.76p per litre is the third rise since April and will push diesel prices to within 4p per litre of the all-time high of July 2008 when oil prices hit $145 per barrel.

Simon Chapman, the FTA’s Chief Economist, said: “Rises in fuel commodity prices have already left operators facing diesel prices 9p per litre higher than a year ago – adding £3,800 a year to the bill of running an articulated truck.

“This latest fuel duty increase, together with those previously introduced this year will add a further £1,200 a year.”

Diesel currently represents 35% of the cost of running a truck, said the FTA.

Chapman said: “The Chancellor is treating the road freight sector as a bottomless well from which cash to bolster public finances can be drawn.

“At the same time, he has embarked on a savage set of cuts to transport infrastructure which will see spending on national road schemes fall by 45% and local authority budgets for capital schemes slashed.”

Chapman added: “Ironically, raising fuel tax simply reduces the amount of cash the industry has to invest in eco-driver training and newer, cleaner engines.

“Fuel duty is not a lever that can be pulled to reduce the logistics sector’s carbon emissions, suggesting otherwise is simply ‘greenwash’.”

Source: ifw