The Road Haulage Association (RHA) has warned that rising fuel costs are pushing Britain’s transport operators towards a financial crisis, with new research revealing that fewer than four in 10 businesses believe they can continue operating before current conditions become unsustainable.
According to the RHA, fuel prices have risen by 35% since the start of the Iran conflict three months ago, placing significant pressure on haulage, coach and van operators across the UK. The association says many businesses are now struggling to absorb the additional costs, with concerns growing over cashflow, profitability and long-term viability.
In response, the RHA is urging the Government to introduce an Essential User Rebate, a targeted support measure designed to reduce fuel costs for transport operators and help ease inflationary pressures throughout the wider economy.
Richard Smith
RHA Managing Director Richard Smith said: “Just 39% of businesses are confident they can keep going under current pressures before it becomes unsustainable. That is a stark picture of the conditions transport operators are currently working in.
“We need the Government to act now. We are calling for an Essential User Rebate to help businesses in our key sector reduce the cost of doing business and relieve inflationary pressure.
“Seven in 10 operators told us a rebate would reduce the need to raise prices for customers.”
The association argues that the Government has already acknowledged the impact of fuel price volatility on parts of the transport sector through changes to red diesel duty. It is now calling for similar support for operators reliant on white diesel, which remains the primary fuel for most commercial vehicle fleets.
Smith added: “With firms fearing the worst, eight in 10 told us their already razor-thin margins are being squeezed, with rising fuel prices creating cashflow problems.
“This is an issue demanding immediate action. The measures we’re calling for would provide respite and give businesses the confidence to look ahead without the spectre of insolvency hanging over them.”
The RHA’s findings highlight the growing financial pressures facing the road transport industry at a time when operators are also dealing with wider economic uncertainty, labour shortages and increasing operating costs.
The association has also expressed concern over recent suggestions from the Prime Minister that transport spending could face further reductions. It argues that cutting investment in transport infrastructure at a time of rising business costs would place additional strain on a sector that plays a critical role in supporting economic growth and supply chains.
The RHA maintains that the road transport industry should be recognised as critical national infrastructure and believes continued investment in roads and transport networks is essential to maintaining the efficient movement of goods and passengers across the country.
Beyond immediate support measures, the association is also calling on the Government to delay any future increases in fuel duty indefinitely. It is further urging ministers to abandon plans to link fuel duty to the Retail Prices Index (RPI) from next April, warning that additional tax increases would further burden operators already facing significant cost pressures.
The RHA has formally written to the Chancellor and relevant Government ministers requesting a meeting to discuss the industry’s concerns and explore measures to support transport businesses during a period of escalating fuel costs.
With many operators warning that their financial resilience is being tested, the association says urgent intervention is needed to prevent further pressure on businesses that are vital to the UK’s economy, supply chains and public transport networks.
