High prices in the oil market are already impacting on the UK industry without further impingement of a further cost imposed by the UK government.
Chancellor Brown's April 2003 budget announced that the high price of oil, generated by the war in Iraq led to the deferment of an increase until October 1. At that time price of crude oil was $25 a barrel. The proposed increase would raise diesel duty from 45.82 pence per litre to 47.10 pence per litre. An increase of 1.3 pence per litre would add £170 million a year to industry's freight transport costs.
With oil prices still high the FTA believes the government should not increase diesel duty in October. Such an increase would set back the industry's ability to compete in export markets and would undermine the limited growth in the UK economy.