The 5ppl fuel duty cut announced last Wednesday has been described as a “sticking plaster,” by RHA’s executive director Rod McKenzie.
Furthermore, prices in bulk and on the forecourt suggest that the cut is currently having little impact.
For example, gains in wholesale prices have exceeded the duty loss.
The price of Brent crude still averages more than $120.
After a small fall last week, it rose on Sunday.
As a result, there was upwards pressure on fuel costs.
The average price of diesel is up by nearly 50p per litre now within a year.
Sadly, there are no signs of prices easing despite the duty cut.
There was also no delay in the ban to red diesel in April – as called for by the RHA in the Spring Statement.
The trade body argued that this move would put more pressure on the fuel costs of the commercial vehicle sector.
Meanwhile, the RHA and its members have been calling for a 15 pence per litre essential user rebate.
Specifically, it believes this measure would help the commercial vehicle sector, where times are very tough.
The RHA’s chair, Moreton Cullimore, said the cut would only save £40 off a £400 tank.
Continuing, Cullimore added that figure was based on current prices without future increases.
In addition, RHA member Rob Hollyman from Youngs Transportation appeared on ITV’s Good Morning Britain.
Hollyman called for the essential user rebate – and the question was put directly to Chancellor Rishi Sunak.
The RHA’s executive director, Rod McKenzie, described the price cut as a “sticking plaster” over our wound.
“We need some strategic thinking about tax and fuel,” he said.
“It needs to be sensible, pragmatic and long term.
That’s why the RHA believes in an essential user fuel duty rebate.”
Concluding, McKenzie reasoned that it would provide a “a 15 pence per litre money-back guarantee to businesses”.
