Logistics UK is calling for the government to freeze fuel duty forever.
The move, said the business group, should help the move to Net Zero.
Specifically, it would help move the sector to alternative fuelled vehicles.
David Wells, chief executive at Logistics UK, believes the time is right.
“The logistics industry is recovering from the impact of the pandemic on the economy,” he said.
“And, with the threat of price inflation on the horizon, every penny counts for our sector.
Continuing, Wells said members were committed to switching to cleaner alternative fuels.
However, he added that the price of vehicles was a barrier.
“The cost of a new alternatively fuelled HGV makes them challenging for many businesses,” he said.
“At present, businesses must allow for higher operating costs, leaving less spare cash for investment.
However, Logistics UK believes the government need to step in and freeze fuel duty forever.
“This will help our member businesses to allocate more funds to the vehicle replacement cycle.
Furthermore, diesel is one of the biggest costs when running a fleet of HGVs.
In addition, Logistics UK’s own research indicates that fuel accounts for more than 30% of HGV’s operating costs.
And, with many logistics businesses facing increased costs due to spiralling drivers’ wages, finances are very fragile warned Wells.
“A guaranteed, permanent freeze on fuel duty would allow our members to recover from the impact of the pandemic,” he stated.
The call comes as Logistics UK continues its regular dialogue with the taxation team at the Treasury.
Meanwhile, many Logistics UK members are signing up to the organisation’s decarbonisation campaign, Route to Net Zero.
This initiative helps business make the necessary changes on the road to decarbonisation.
For more information, or to sign up, please visit the website.