Logistics UK reacts as oil prices reach four-year high

Oil prices increased to their highest level since 2022 on 30 April amid reports that the US military is briefing President Donald Trump on new options for the Iran war.

Logistics UK continues to engage with the government on the case for a package of measures to support the logistics sector, including:

– Extending the 5p fuel duty freeze.

– Logistics to be formally recognised as a priority fuel user within resilience planning;

– Inclusion in the British Industrial Competitiveness Scheme to reduce electricity costs.

– Extension of full expensing to leased zero-emission commercial vehicles.

– Targeted incentives to support uptake of low carbon fuels.

– A pause alongside wider reform of business rates to ease cost pressures on the sector.

– Taking a longer-term approach to mode shift grants.

We are also supporting the government’s action to tackle late payments and urging the government to monitor narratives related to profiteering to help prevent panic buying and fuel shortages.

Logistics UK joined a cross‑industry call with Northern Ireland Infrastructure Minister Kimmins on 28 April, where we highlighted the primary impact of the Middle East crisis is cost pressures rather than supply disruption. The discussion emphasised the sector’s critical role in national resilience, with calls for formal recognition of logistics as a priority fuel user.

Logistics UK’s CEO Ben Fletcher said: “The sharp rise in oil prices is placing immediate and significant cost pressures on the logistics sector at a time when supply chains are already under strain. While we are not currently seeing widespread disruption to the flow of goods, sustained volatility in fuel markets risks undermining the resilience businesses and consumers rely on every day.

“Logistics underpins the entire economy, and it is vital the sector is formally recognised as a priority fuel user within national resilience planning. Logistics UK is working closely with government to secure practical, targeted support – from maintaining the fuel duty freeze to accelerating the transition to zero-emission vehicles – to ensure our industry can continue to keep the UK moving efficiently and affordably.”

To support our engagement with government on this crisis, we are collecting member insight via the Logistics Performance Tracker survey. Please complete our short survey on SurveyMonkey here or via Microsoft Forms here as soon as possible.

Read our latest Middle East update here, which includes data on fuel prices.