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Hauliers urge Government to delay withdrawal of fuel support

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Irish hauliers are calling on the Government to postpone the planned withdrawal of fuel support measures, warning that a renewed rise in oil prices could sharply increase operating costs and add to inflationary pressure across the economy.

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The Irish Road Haulage Association (IRHA) issued the appeal after oil prices climbed above $90 a barrel for the first time in almost six weeks.

Hauliers now expect the increase to feed through to filling stations in the coming days, placing further pressure on an industry whose costs are heavily influenced by fuel prices.

The association warned that higher diesel prices would not affect transport operators alone. Increased haulage costs could ultimately be reflected in the prices paid by households for goods and services.

Planned September phase-out questioned

Fuel support measures are due to be phased out from September, but the IRHA believes the timetable should be reviewed amid renewed uncertainty in the Middle East.

IRHA president Ger Hyland said it would be “madness” to consider increasing fuel costs at a time when prices were already rising sharply.

He argued that the Government needed to take a realistic view of what hauliers and motorists could afford, particularly given the tax burden included in Irish fuel prices.

“Let’s be clear here. Most of the price of fuel in Ireland is made up of various taxes,” Hyland said. “Many countries across the EU have lowered fuel taxes and I think now is not the time to consider winding down fuel supports.”

Hauliers warn operating costs are unsustainable

Hyland pointed to volatility involving Iran and the wider region, arguing that the outlook showed little sign of improving.

For road transport operators, the effect of even relatively small pump-price increases is magnified by the large volumes of diesel consumed by commercial fleets.

“Fuel prices are just too high for the volume of fuel that hauliers use. Our industry cannot afford to operate at these prices,” he said.

The IRHA is therefore asking the Government to delay the September phase-out until there is greater clarity over the Middle East conflict and its likely impact on global oil markets.

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