Fuel Duty Increase is 'Unthinkable' Says Road Haulage Association

LONDON, March 29, 2012 /PRNewswire/ --

Economic recovery is massively dependent upon a strong logistics industry and for many transport operators, the prospect of a 3ppl fuel duty increase in five months time is unthinkable.

"Despite the warnings, we are currently seeing long queues form at filling station forecourts as road users ensure their tanks are full," said RHA Chief Executive Geoff Dunning. "And this at a time when no official tanker driver strike has been confirmed. This panic buying, while not only jeopardising fuel stocks for essential users of fuel, is providing a vast and unforeseen boost to Treasury coffers in fuel duty alone."

The reasoning behind this is as follows …

Road users are currently being told to keep their tanks topped up. The average UK car fuel tank takes 60 litres of fuel so, based on a conservative estimate, this 'topping up' will account for an additional 20 litres of fuel. With fuel duty currently standing at 57.95 ppl, the motorist will therefore be paying an extra £11.59 even before the price of the fuel, VAT and other costs have been factored in.

On 30 September 2011, 28.6 million cars were licenced for use on UK roads. So once again, based on a conservative estimate of 25 million cars, this would amount to a rapid fuel duty income of £289.7 million. The revenue from other road users, including road transport operators, will push this figure even higher.

On that basis, surely there can be no reason to see a duty rise in August.