Hauliers are calling on the Government to intervene as record diesel prices threaten to erode their profits completely. The average cost of diesel has soared to £1.56 per litre, driven by surging oil prices following Russia's invasion of Ukraine, leaving many in the logistics sector struggling to stay afloat.

The Road Haulage Association (RHA) has urged ministers to delay changes to the use of untaxed red diesel by a year to ease the pressure on the industry. It is also calling for a two-year freeze on fuel duty and more flexibility with the Apprenticeship Levy to help tackle driver shortages. The association argues these measures are essential to prevent further damage to the sector.

Rod McKenzie, RHA’s executive director for policy and public affairs, highlighted the dire situation, noting that the haulage industry operates on thin margins, with average annual profits of just 3%. He explained that rising fuel costs, amounting to an additional £77 to £87 per week per truck, are effectively erasing these slim profits. “This leaves many businesses on the brink, with no choice but to pass on costs, adding to inflationary pressures for everyone,” he said.

McKenzie warned that without government action, some hauliers may not survive, exacerbating inflation and increasing costs for UK consumers. He urged the Government to act swiftly to support the industry and mitigate wider economic impacts.