The Spanish carrier federation Fenadismer warns that the sharp rise in diesel prices has pushed the transport sector into a very difficult financial situation. In just a week and a half since the outbreak of the conflict in Iran, the price of diesel in Spain has increased by more than 30%., reaching a record level of €1.80 per litre, i.e. almost 30 cents more than two weeks earlier. According to the federation’s estimates, this means more than €100 million in additional costs for around 100,000 transport companies operating in the country. The organisation also criticises both the lack of response from the government and – as it stresses – the “inefficiency” of oil companies operating on the Spanish market. In FENADISMER’s view, current fuel prices are causing serious cash-flow problems, especially among self-employed carriers and small and medium-sized companies, which are often unable to pass rising costs on to customers. The federation is announcing an extraordinary industry meeting, emphasising that for thousands of carriers, temporarily suspending operations is starting to be more profitable than carrying out transport at a loss.
Diesel in France has exceeded 2 euros per litre
Carriers in France are also facing a difficult situation. The French road transport organisation OTRE warns that the sharp rise in diesel prices is seriously threatening the financial health of transport companies. According to calculations by the analytics firm Fig Data, based on public data from the French Ministry of Economy and Finance, the average diesel price in France on 10 March reached €2.0037 per litre, exceeding the symbolic threshold of 2 euros.
As CNR (Comité National Routier, an organisation that monitors the market, statistics and road transport costs) indicates, the increase in fuel costs means a rise in expenditure of 20.3% for trucks with a gross vehicle weight above 7.5 tonnes and 21.4% for passenger vehicles in the same category.
OTRE stresses that fuel is one of the largest cost items in road transport, which is why such dynamic increases hit small and medium-sized enterprises particularly hard. The organisation is calling on the authorities for urgent action, including support for companies’ cash flow, raising credit limits and introducing a temporary mechanism enabling monthly fuel price fluctuations to be passed on to transport contracts.
Transport under pressure from rising costs
Carriers in the Netherlands, in turn, point out that rising fuel prices are coming on top of other cost increases the sector has been struggling with for several years.
In addition to more expensive diesel, Dutch carriers also have to contend with higher labour costs and additional regulatory burdens.
This year, labour costs in the transport sector alone are expected to rise by around 6%. At the same time, businesses still need to invest in the digitalisation and energy transition of their fleets,” the Dutch transport organisation TLN points out.
Another challenge will be the introduction of road tolls for trucks. From 1 July, the new charge may mean an increase in costs of around 20.1 cents per kilometre for many vehicles.
Margins in transport have been very low for years. This accumulation of costs is making it increasingly difficult for many companies to stay in the market,” emphasises Elisabeth Post, head of TLN.
The industry calls for urgent support
Carrier organisations from almost all of Europe are calling on governments to respond quickly and implement measures that will limit the impact of rising fuel costs on road transport.
Among the proposed solutions are:
- immediate support for the cash flow of transport companies,
- raising financing limits for businesses,
- introducing mechanisms enabling fuel costs to be passed on to customers more frequently.
Carriers point out that in many transport contracts, fuel indexation mechanisms work with a significant delay, often even a year.
Therefore, the industry is proposing temporary solutions that allow transport prices to be updated monthly depending on changes in fuel prices.
Some governments are already intervening
Rising fuel prices have prompted some governments to intervene in the market. Portugal has decided on a temporary reduction of the tax on petroleum and energy products for diesel. According to industry data, without this decision, the price of diesel would have risen by around 23.4 cents per litre. The introduced tax relief means a reduction of around 3.55 cents per litre, which after taking VAT into account translates into real savings of around 4.37 cents per litre. The government in Lisbon also announced further monitoring of the situation and the possibility of additional interventions if fuel prices continue to rise.
Some Central European countries have gone even further. Hungary and Croatia have decided on direct caps on fuel prices at stations.
In Croatia, the price of diesel has been capped at €1.55 per litre to prevent the forecast increase to around €1.72 per litre.
In Hungary, a maximum diesel price was introduced at 615 forints per litre, with the preferential price applying to vehicles with Hungarian registration plates, including trucks.
Slovenia has applied a mixed intervention model, combining an excise duty reduction with an administrative cap on fuel prices.
Rising crude oil prices are fueling the fuel crisis
The trigger for the sharp rise in fuel prices is geopolitical tensions in the Middle East. The conflict between the United States and Israel and Iran has caused significant volatility in the crude oil market. At one point, crude prices exceeded $100 per barrel, which translated into a rapid rise in fuel prices in Europe.
For road transport, this means the return of one of the biggest threats to the sector’s stability.
Carriers stress that if the increase in fuel costs is not reflected in transport rates, many companies may face serious problems maintaining cash flow. And in the longer term, this may affect not only the transport sector, but also the functioning of entire supply chains in Europe.
