The RHA says fuel prices have risen by 35% since the Iran conflict began three months ago, adding further pressure to haulage, coach and van operators already working on tight margins. The association is urging the Government to introduce an Essential User Rebate for white diesel, arguing that targeted support would help reduce business costs and limit price increases for customers.
According to the RHA survey, just 39% of operators said they were confident they could continue operating under current fuel pressures before conditions became unsustainable. The survey received 550 responses, with 90.6% coming from SME fleets.
The findings also show that 84.6% of respondents reported reduced margins, while 56.8% said rising fuel prices were creating cashflow pressure. The RHA said 71% of operators believed a rebate would reduce the need to raise prices for customers.
RHA Managing Director Richard Smith said the figures showed “a stark picture” of the conditions transport operators are facing.
“We need the Government to act now. We are calling for an Essential User Rebate to help businesses in our key sector reduce the cost of doing business and relieve inflationary pressure. Seven in ten operators told us a rebate would reduce the need to raise prices for customers,” Smith said.
The RHA is also pointing to the Government’s recent move to cut red diesel duty, arguing that ministers have already recognised the impact of fuel price shocks on parts of the transport and wider economy. Red diesel is used by eligible off-road machinery and some sectors, while white diesel is the standard fully taxed fuel used by road vehicles.
The association says the same principle should now be applied to road transport operators using white diesel. It is also calling for planned fuel duty increases to be delayed indefinitely and for plans to link fuel duty to RPI from next April to be scrapped.
Smith added that rising fuel costs were now hitting operators’ margins and cashflow at the same time.
“With firms fearing the worst, eight in ten told us their already razor-thin margins are being squeezed, with rising fuel prices creating cashflow problems. This is an issue demanding immediate action,” he said.
The RHA has written to the Chancellor and relevant ministers requesting a meeting to discuss the proposed rebate and wider fuel duty measures.
