Fuel costs: Still on the rise despite duty cut
The latest prices at the pumps in bulk and on the forecourt suggest that the 5ppl fuel duty cut announced on Wednesday is currently having little impact.
Gains in wholesale prices have exceeded the duty loss. With the price of Brent crude still averaging more than $120 – after a small fall last week, it rose yesterday – this has continued to create an environment of upwards pressure on fuel costs.
The average price of diesel is up by nearly 50p per litre now within a year – with no signs of prices easing despite the duty cut. There was also no delay in the ban to red diesel in April – as called for by the RHA in the Spring Statement – which will further put pressure on the fuel costs of the commercial vehicle sector.
It comes as RHA and its members have been calling for a 15 pence per litre essential user rebate to help the embattled commercial vehicle sector.
Duty cut impact
RHA Chair Moreton Cullimore explained on BBC Radio Gloucestershire about how it was only going to save £40 off a £400 tank – and that was based on current prices without future increases.
RHA member Rob Hollyman from Youngs Transportation appeared on ITV’s Good Morning Britain, calling for the essential user rebate – and the question was put directly to Chancellor Rishi Sunak.
RHA Policy lead Tom Cornwell explained how the cut only takes us back to last week.
Executive director, Rod McKenzie, has described the move as a “sticking plaster” over our wound.
He said: “We need some strategic thinking about tax and fuel. It needs to be sensible, pragmatic and long term. That’s why the RHA believes in an essential user fuel duty rebate.
“This would give a 15 pence per litre money back guarantee to businesses that depend on road transport: coaches, lorries, vans.
“It’s a model that works for other European countries…Spain, France, Italy, Belgium and Ireland to name but a few. It’s also fair.”