Road Haulage Association Urges Fuel Price Action - Introduce a Temporary Fuel Duty De-escalator Now!

WEYBRIDGE, England, October 8 -- With world oil prices exceeding US$50 a barrel, the RHA has urged the Chancellor of the Exchequer to take action to contain the price of diesel fuel.

"The UK is the only country in the EU to charge more tax on diesel than on petrol, yet the nation's goods are moved by trucks," said RHA Chief Executive Roger King.

"Every time diesel increases by 1pp litre, it adds an average GBP800 to the annual cost of running an HGV. British manufacturing, already reeling from the high price of steel and energy, needs stability in its transport costs.

"The Chancellor can take action by using the windfall income he is receiving from oil revenues and increased VAT remittances".

The Road Haulage Association proposes the following action plan. . .

- Abandon now the further increase in fuel duty of GBP1.92ppl postponed from September until November.

- Introduce a temporary fuel duty de-escalator for diesel using oil revenue windfall income. This would reduce duty and compensate for the rising cost of fuel, triggered when world prices exceed US$50 a barrel.

"It is vital that Government takes action over this," concluded Roger King. The UK is in the unfortunate position of having to pay more for fuel than any other EU country. The action we propose will cost the Chancellor nothing in budgetary terms, yet it could prove to be a lifesaver for the UK economy".

The Road Haulage Association - supporting the industry on which the UK depends.

Contact Kate Gibbs, RHA Communications Manager on : Tel: +44-(0)1932-838917, Mob: +44-(0)7979-531451