Friday, October 21, 2011

Road Haulage Association Warns Against Fuel Price Rises

Must not fuel inflation warns trade body
Shipping News Feature

UK – The British Road Haulage Association has warned that it predicts that fuel prices will be pushed even higher over the coming weeks as a result of a weakened Pound, resulting in the costs of oil increasing in the last six weeks, and that this increase will see UK inflation figures rise if not dealt with by the British government.

“To add to this immediate problem for hauliers and motorists alike, the announcement earlier this week that UK inflation has risen once again gives cause for tremendous concern about the expected levels of fuel duty increases next year”, said RHA Head of Communications Kate Gibbs.

“We are already faced with a proposed 3.02pence per litre (ppl) being added to the duty rate on 1st January, to be followed in August 2012 by an inflation-linked rise of a further 3.41ppl. If these rises go ahead, they will equate to an 11% increase in fuel duty in one year."

Ms. Gibbs went on to insist that fuel prices be stabilised and tax rates reduced on fuel in the near future or risk damage to the UK’s economy.

“The bottom line is that (the plans) cannot be allowed to go ahead. If the Chancellor doesn’t see sense and goes ahead with his budgetary plans, the chances of the UK sinking back into a recession will escalate from threat to reality,” she concluded.