RHA gives evidence to Treasury and MPs on fuel duty impact

RHA gives evidence to Treasury and MPs on fuel duty impact

17 May 2022 Posted By James Evison

RHA gave evidence to a Treasury official and MPs yesterday alongside Logistics UK and members – Paul Abbott, Group Director, Knights of Old, and Lesley O’Brien of Freightlink

The session examined current fuel duty rates and whether further measures are required to support the road freight sector, such as the introduction of an essential user rebate, to ensure that the current high fuel prices do not lead to greater inflationary pressure.

Impact

Questions considered the impact of fuel prices on small hauliers, whether current measures go far enough (5p cut) and what the impact would be if a rebate was introduced both on hauliers and the wider economy.

Members were asked about fuel price increases as a percentage of their costs and the wider impact of the rise in fuel prices. Hauliers were also asked if their contracts had the mechanisms to pass on additional costs to their customers.

International comparisons

The essential user rebate was raised and international comparisons of other EU countries where diesel rebates are in place for commercial operators including Belgium, France, Italy, and Spain.

Other fuel duty rebate schemes were also raised including the Bus Service Operators Grant (BSOG) – currently offering rebates of 34.57 pence-per-litre for bus operators, specifically to keep fares down – and the Rural Fuel Duty Relief scheme – a 5 pence-per-litre reduction to fuel retailers to support those in remote areas

A second oral session is today focusing on EU and international hauliers.

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