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Cut diesel duty to protect UK economy, Logistics UK urges government

The Russian invasion of Ukraine on 24 February 2022 has led to a massive spike in the cost of diesel for hauliers in the past few weeks, putting an unsustainable burden on UK businesses Logistics UK said this week.

Writing to Rishi Sunak MP, Chancellor of the Exchequer, ahead of the spring Budget, Elizabeth de Jong, Logistics UK’s Director of Policy, said:

“Logistics businesses, which operate on very narrow margins of around 1%, are currently facing significant increases in the price of fuel. These additional costs cannot be absorbed by logistics operators and it is unavoidable that much of these cost rises will need to be passed on to end customers as a result. Fuel is the single biggest expense incurred by logistics operators – it accounts for a third of the annual operating cost of an HGV and without it, goods cannot be delivered to their destinations.

“Logistics UK's members need the Chancellor to cut diesel Fuel Duty in the next Budget. This reduction could be temporary and reviewed in the Autumn Statement, should fuel prices have fallen.”

Crude oil was trading at its highest level for 14 years on 8 March 2022. The cost of Brent Crude Oil has risen by 27% since the beginning of the year, and the cost of a litre of diesel at the pump has risen by 7% in a week. Logistics UK estimates that just one penny increase in duty adds around £470 per year to the cost of running one truck. 

The Logistics UK policy team met with officials at HM Treasury this week to discuss the fuel price crisis, outlining the logistics sector’s strong concerns about its impact on the industry.

Logistics UK has prepared a briefing on fuel costs and supply based on the latest publicly available information.


Published On: 17/03/2022 16:00:49


In brief


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