Proposed increase of 3p in Fuel Duty
The UK could see its most expensive petrol prices in history in a matter of weeks. A rise of 3p in petrol duty is proposed to come into effect on April 1 as part of Chancellor Alistair Darling’s latest budget, which will raise the overall price of petrol from £1.16 to £1.20 per litre. The highest previous price of petrol was £1.19 in 2008, which mirrored the record prices of crude oil. Even more increases are expected to be brought in over the rest of the year, and motorists could expect to pay as much as £1.23 per litre by the end of 2010.
The move has sparked outrage among motoring organisations and haulage bodies. The A.A has asked the Chancellor to postpone the increase, citing worries about a rise in inflation. As A.A President Edmund King commented: “We all know government finances are in dire straits but a 3p rise in fuel duty is not good for the economy and could fuel inflation”. RHA Chief Executive Geoff Dunning spoke with similar discontent on the plans, concerned that the increase will force many smaller haulage firms to shut down: “We are already paying fuel duty rates that are up to six times higher than our European counterparts. If the Chancellor goes ahead with the 2.5 increase next month, it will mean that road transport operators will, on average, be paying an extra £1,100 per year in fuel duty alone, and that’s on top of the price of the fuel itself”.
The plans have also sparked outrage amongst members of the government, including Labour MP Lindsay Hoyle: "Crude oil has gone up this year, but nothing like the rise in petrol prices. Motorists are being legally mugged at the forecourt by petrol companies." Despite these outcries, many petrol stations across the country have already begun selling petrol at the elevated price. Petrol stations in London’s Hyde Park area have implemented the increase, as have sites in the Highlands and Islands of Scotland, who already have to deal with increased distribution costs due to their location.
The increase is bad news for haulage firms, a sector already struggling in a difficult market post-recession. In these times it is clear that such companies will require an accurate and up to date way implement fuel saving to both ensure that they are being cost effective and to highlight where they can make changes to their business plan. With this proposed new increase planned to take effect on April 1, and with more hikes in petrol prices on the way in 2010, actionable data regarding any haulage businesses expenses on the road is vital.
