Industry renews calls for fuel rebate scheme
Date: 22 October 2007
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The freight industry has renewed its call for the government to introduce a fuel rebate scheme for logistics drivers, in light of the recent increase in fuel duty.
From October 1st, the government increased fuel duty by 2p per litres, with further increases due to come into effect over the coming 18 months.
The hike means that the price of diesel used to fuel lorries and other commercial vehicles, such as courier vans, has risen to its highest ever level.
This is placing unacceptable pressure on freight haulage firms, for whom fuel can make up a third of their operating costs.
Geoff Dossetter, director of external affairs at the Freight Transport Association, said: "We desperately need a system which separates the way we tax fuel for cars compared with fuel for commercial vehicles - presently duty of 50p per litre is charged on both, whether that applies to a small family car doing 7,000 miles per year or a 44-tonne truck doing 75,000 miles per year.
"That individual truck is now paying a fuel bill of around £36,000 per year. In view of the current high price of oil, the chancellor should now reverse the 2p per litre increase in fuel duty he imposed from October 1st and make early arrangements for a rebate scheme to reduce industry's fuel tax bill."
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