Rising cost of haulage fuel could be disastrous for economy
Date: 23 April 2008
The rising cost of fuel could be disastrous for the UK economy if action isn't taken.
That's the view of the Road Haulage Association (RHA), a group that works to champion the interests of freight companies in Britain.
At the recent 2008 Commercial Vehicle Show in Birmingham, the RHA's chief executive, Roger King, said: "The prime minister has urged stability within the economy but we haven't got that with fuel prices.
"Haulage rates cannot keep up with costs and operators are gradually falling into a financial trap; even if they have a fuel escalator in their contract, this does not make up for the even faster increase in prices."
He argued that the chancellor, Alistair Darling, should shelve plans to increase fuel duty from October, and consider a proposal to establish a bench price for oil - "at, for example, say $110 a barrel with any further price increases offset by a fuel duty reduction".
High fuel prices are causing freight companies huge problems, as diesel is one of their biggest operating costs.
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