Fuel prices and the UK economy

The news from the Automobile Association that motorists are cutting back on car use as pump prices begin to escalate comes as no surprise to The Road Haulage Association, The Chartered Institute of Logistics and Transport, the Federation of Small Businesses and the British Chambers of Commerce.

One of the findings of the AA poll is that 26 percent of the 15,000 drivers asked, are using their car less as a result of escalating fuel prices.

“This is proof, if proof were necessary, that while the motorist has the choice of cutting back, UK road hauliers have no option but to pay the higher fuel price, their customers must pay more, and eventually consumers pay through higher prices in their shopping baskets”, said RHA Chief Executive Geoff Dunning.

“We are once again seeing the price of diesel increase nationwide on an almost daily basis. While the motorist can walk or cycle, travel by train, bus or tram, or even chose not to travel at all, UK PLC has no choice but to use trucks to deliver the goods.

"Last Autumn’s economic ‘lifebelt’ of a reduction in VAT was, for the road haulier, instantly wiped out with the increase in fuel duty in the Spring Budget. Despite increases caused by higher oil prices and a strengthening dollar, we are set to see another duty increase of 2 pence per litre in September, followed by an above inflation increase in April 2010.

"The Government must see from this AA report that treating both petrol and diesel duty in the same way, and treating all road users in the same way is simplistic and must be changed."