Farmers warn of knock-on impact of fuel duty rises
Date: 15 February 2008
There are growing concerns that the proposed increases for fuel duty, due to come into force on April 1st, could have knock on effects on the whole of British industry, as it will force haulage companies to increase their prices.
In a letter to chancellor Alistair Darling, the National Farmers' Union (NFU) said it had "considerable concern" that the 2p per litre increase would have a negative impact on the country's agricultural sector as it is heavily reliant on freight haulage professionals.
Dai Davies, president of NFU Cymru, added: "With fuel accounting for 35 per cent of haulage input costs, inflation in the haulage industry already runs at over six per cent and this cost has to be recouped through higher charges to the user.
"However, as primary producers farmers are inevitably price takers, not makers, so they cannot recoup their increased costs through selling at higher prices."
Recently, representatives of the Freight Transport Association and the Road Haulage Association met with the chancellor and asked him to scrap the proposed increase.
In a joint letter printed in the Daily Telegraph, the two haulage groups said: "An increase will generate further serious difficulties for the transport and forecourt industries, business drivers, those dependent on the car, and for businesses or individuals in remote or rural areas with no alternative transport options."
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