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RHA calls for Red Diesel ban to be delayed

Keep On Trucking by Keep On Trucking
22 February 2022
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Red diesel ban: RHA calls for one year delay

In the upcoming Budget, we ask the Chancellor to support the sector and the thousands of small haulier businesses across the country who keep Britain moving by delaying the ban on the use of red diesel.

21st February 2022 4:26 PM

The RHA is calling on the Chancellor of the Exchequer, Rishi Sunak, to delay the £1.4bn hit to small hauliers and businesses by deferring the ban on the use of red diesel by one-year from April 1 – and take a phased approach to introducing it.We are making the move due to the crippling cost pressures that hauliers are experiencing as we emerge from the pandemic and one year on from the UK’s departure from the EU.

Rod McKenzie, Executive Director of Policy and Public Affairs at the RHA, said : “UK hauliers have done a heroic job in keeping the economy running during the Covid crisis.

“Punishing them with a red diesel hike tax is damaging to their business and we urgently call on the government to reconsider this move.”

Cost pressures

With shortages of drivers, vehicles and parts combined with increasing wage, fuel, and energy costs, now is not the time to pile on extra costs on small businesses and put our economic recovery at risk.

The costs of operating a 44-tonne truck have increased by nearly 17% in the past year. As the global oil price and demand for fuels increases, we have near record diesel prices compounded by an 18% increase in driver wages.

Small hauliers operating on thin margins simply cannot cope with the added pressure of the loss of the red-diesel rebated fuel in April which would add over 1% in running costs for a lorry.

The lifeblood of the UK economy

Despite severe financial challenges, hauliers across the country have remained focused on delivering a resilient supply chain. Government must now support them as they grapple with rising energy prices and high inflation.

They are the lifeblood of the UK economy and vital to the success and future growth of British industry.

Source RHA

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