The Freight Transport Association has told the Treasury that UK industry must have protection from short term fuel escalation.
In a letter to the economic secretary John Healey, FTA chief executive Richard Turner pointed out that world crude oil prices have increased bulk diesel prices from 58.4p per litre in March 2002 to 64.5p today. In real terms this is equivalent to an increase in diesel duty of 7.3 per cent.
With fuel constituting close to 40 per cent of lorry operating costs, movements in the price have substantial effects on overall cost which eventually impact on manufacturing and retail prices.
The FTA also called for closer joint working between industry and the government regarding the operational details of the forthcoming lorry road user charging arrangements and for amendments to Vehicle Excise Duty systems.
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