In a bid to reduce the impact on the haulage industry of inflation and record high fuel prices in the United Kingdom, the All-Party Parliamentary Group (APPG) for Road Freight & Logistics has called upon the government to introduce an essential user fuel rebate of a minimum of 15p per litre (ppl) for logistics operators, road freight and coach operators, with immediate effect. 

In the latest report from the group led by MP Greg Smith, a warning was made about the effect of rising fuel prices on everyday goods and commodities. It was also stated that urgent action is required to protect haulage companies from going bankrupt and family household budgets that are already under pressure from historically high energy prices and more. 

Little Or No Effect From Existing 5p Per Litre Drop

Back in March of 2022, the government introduced a 5ppl drop per litre for UK haulage companies. However, according to the APPG survey, 92% of hauliers have felt little to no impact from it, given that this figure has been wiped out by increased fuel prices. 

What it also revealed is that average running costs for an articulated lorry have risen sharply in recent times, from £45,000 to £62,300, and that these increased costs are something operators are being forced to pass on to onward services and consumers. 

A particularly low figure of 3.5% was highlighted by the research as being the number of haulage businesses who believe that they can continue to be profitable in the absence of support with fuel prices. An uncertain future is currently being seen by many operators. 

Considerably Higher Than EU 27 Average 

Given that UK diesel is considerably higher than the EU 27 average, it would seem that there is room in which to manoeuvre for the government. This disparity puts UK hauliers at a distinct disadvantage when compared to EU operators and weakens UK logistics as a whole. 

This is compounded by the fact that EU countries have taken a number of steps to protect their respective haulage sectors from both increased fuel prices and Covid. The 15 ppl rebate is being recommended as a way to address this gap, with Logistics UK having this to say:

“Our hauliers are essential to keeping our economy strong and our supply chains moving, but at present, they are being hit by sky-high fuel prices, leaving many with little choice but to pass on these costs to consumers.

This vicious cycle is pushing up prices and driving inflation, and it is imperative that the government counter this by introducing an essential user rebate of at least 15 pence per litre for hauliers and coach operators.

“A failure to act now risks making an already challenging situation significantly worse, and we urge the government to act and introduce an essential user rebate without delay.”

Supporting Our Vital Haulage Industry & Supply Chain

High fuel prices are something that affects everyone, from haulage companies trying to make a living to consumers who are themselves trying to make ends meet. As such, we’re fully behind any step that will provide relief to struggling hauliers, resulting in everyone’s household budgets stretching further. 

Meanwhile, at HGVC, we continue to support the industry with leading HGV driver training programs via our nationwide network of testing centres. If you’d like to know more about us, please take a few moments to look around our website, where you’ll find everything you need to know and more. 

Alternatively, to speak with us directly, click on ‘contact us’ or call 0330 818 8888, and we’ll be delighted to discuss your training needs.