Almost unnoticed, the UK government fuel rises, announced in the pre-budget report in November, took effect yesterday. Petrol and diesel duty will increase by 2.12p a litre, taking diesel over a £1 a litre once more. The rise comes on top of a December duty increase of 2p a litre on both fuels which had been deferred from April 2008 when global oil prices were at record levels.
"Taking an extra pound off drivers each time they fill up their fuel tank is a pound taken away from high street and leisure spending that would help revive the economy," said AA President Edmund King. The AA said the fuel duty rises took the tax element paid by motorists in the UK to 71%, one of the highest rates in Europe and second only to the Netherlands and Norway. It also said that from April 2010 motorist face a further 4p a litre duty rise on both fuels.
Our haulage industry will be severely affected by this rise and it's obvious the basic necessities of life such as food, will increase in price. Surely the chancellor could have raised the money by putting a tax on European hauliers who, with massive tanks, fuel up in Europe before coming to UK. They are able to be more competitive, due to their much cheaper fuel costs, than British hauliers. Just a thought.
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16 comments:
I seem to remember raising this issue a few weeks ago and you commented that it wouldn't affect you personally much!
Glad you have now got the point!
(By the way, I'm giving Oldrightie a clear run! He seems to have claimed you for himself!)
"What do you mean about Oldrightie? What offer has he made that I can't refuse? :)"
I think you'll have have to ask the crazed old right-wing loony himself!:)
I could never understand the argumen about European hauliers being more competitive - surely UK hauliers could just do the same thing when they're in Europe on cheap fuel or use it when back in the UK?
I will Ted, I will. Hate to miss out on anything, life's too short these days :)
The argument is that British companies are employing European hauliers to do deliveries in the UK Stuart because UK hauliers are too expensive (due to high fuel charges).
Subrosa, but that's presumably just continental wagons coming across here with a load and a tank of cheap diesel - once they've drained the tank they're no better off than domestic hauliers.
So when UK trucks are across in Europe with a load then they can come back with a full tank of diesel thus they enjoy the same cost advantage as the continental wagons?
Stuart I'm angry with myself because there was a discussion about this very subject the other day on radio 4 and hauliers were included. It seems European wagons have fuel tanks up to 8 times bigger than those permitted here in UK and that makes it cheaper for them to operate here.
Yes of course if UK hauliers are working in Europe they fill up with cheap diesel but the point is that the UK haulage industry is at an unfair disadvantage.
Am I making sense?
My Old man is the operations director of a transport company who specialise in branded clothing from Italy into the UK.
Not that the contents of his vehicles is the issue.
The company is based in the midlands and a short google search will show them up.
However he has a policy on fuel that saves a fortune.
Basically,
All UK vehicles leave the UK empty and fuel immediately they get to the continent. All UK vehicles fill up on the continent and arrive in the UK full.
As the ferry terminal distance is approx 166 miles to the depot they can arrive on a Thursday and leave on a Sunday back to the continent and never need UK fuel.
Sad really if you look at it but bearing in mind he is trying to keep a UK co running, is employing UK drivers he has to cut his cloth somewhere.
Good luck to him
Morning LOTF. that's fine if, like your Dad you have a need to go to Europe. The problem is with British hauliers who only deliver within the UK, the likes of supermarkets. No point in them trailing to Europe just for cheap fuel or is there?
Morning Subrosa,
I notice from earlier posts certain individuals may carry a torch for you.
Trixy never got back to me about the rugby offer :(
Anyway back on topic no even if your company is in Dover and its easy to get to Calais then the time and the ferry costs would not give a cost saving both finacially or operationally at all.
The advantage for British haulers is as they move to and from the continent. I agree.
Many UK haulage companies try to buy in bulk or hedge as to what the price may be. They have their owwn bulk tanks and pumps, however a haulage co is a haulage co not a comodity trader and do not employ people as such to make this judgment call. Not core to the business. And if as in a year ago derv was 1.22 a litre and you bulk bought at that price, then watched it drop to 96p that would be one hell of a bad call.
But the motorist of any comapny that uses the road has been the easiest target for government taxation or legalised theft as others call it these days for more years than I have walked on this planet.
LOTF. I think if anyone holds a torch for me it's one of these wind me up thingies, you know the type :)
I understand the problems facing UK hauliers, especially the small business. They have terrible struggle these days (the few that are left) being competitive.
I think you'll have have to ask the crazed old right-wing loony himself!:)
Change the right to left and you have Brown. Dear Lord, No!
Nice little under the radar fuel increase. Yvette, little twit, seemed to think we should be grateful for this increase, now the oil price is so low!
Subrosa whenever i drive into the petrol station to fill up, i just hand one of my mates £20 and say put £20 worth in. I dont even bother to look at the prices now becouse im sure i would have a fit.
Subrosa, from where I'm standing I can't see that the UK hauliers are at any disadvantage as compared to their continental counterparts, in the grand scheme of things at least.
As LOTF makes clear a UK truck returing from Europe can enjoy the same advantage as a continental one coming across here, but once the tank runs dry they either revert to UK fuel or go back across the Channel.
This of course will distort the market, but overall I can't really see how the UK industry as a whole is disadvantaged, since the rates they charge will be commensurately higher across here.
Of course, wagons which never cross the water won't ever gain the advantage of the cheaper fuel, but it's presumably as likely to be a UK truck that's undercutting them than a continental one.
And I suspect the long-distance truckers won't be doing much of the regular domestic stuff anyway, because the supermarkets et al will probably depend more on their regular local haulage companies.
Clearly there are market distortions caused by the fuel duty differentials, but I don't think it's quite as straightforward as is normally claimed.
'Of course, wagons which never cross the water won't ever gain the advantage of the cheaper fuel, but it's presumably as likely to be a UK truck that's undercutting them than a continental one.'
That's my point Stuart. Such a shame so many small businesses have gone bust because of the fuel issue in the past 10 years. There were lots of handy wee hauliers who would carry something from say Dundee to Glasgow for you. It doesn't happen now. I've been trying to get a dining table from here to Bath for the past 2 years and the cheapest rate is £330, the cost of a new one!
Yes I know you'll say hire a van but I really don't want to resort to that and also I would need help lift the thing.
Hello Joannah thanks for visiting. Hope there is something of interest to you now and again.
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