Haulage firms suffering as petrol prices rise
Haulage firms have warned the latest rise in petrol and diesel prices will see many transport companies going out of business as they struggle to cope with spiralling costs.
According to figures released by the Automobile Association (AA), average UK petrol prices rose 4.98 pence per litre between mid-May and mid-June to a figure of 102.66 pence per litre. Diesel prices have seen less of a rise but are still up 1.36 pence to 104.85 pence.
Sarah Rogers, transport manager at Northampton-based haulage firm EM Rogers, said: "If you think about how much people notice when they are just filling up their cars with petrol or diesel and it costs a couple of pounds extra per tank, imagine what it's like for us when our tanks hold between 1,200 and 1,500 litres each.
"A few pence per litre extra adds up to a huge amount for us and our margins are tight enough as it is. These rises will put even more people out of business because it's difficult to pass on costs.
"It's a particularly difficult time for the transport industry and the casualties will not just be employees, but whole companies as well."
The recent rise in petrol prices is the second highest increase ever and is only two-thirds of a penny short of the 5.61 pence per litre record from the same time last year.
Pete Butler, of the Road Haulage Association, said: "Any rise in prices affects the haulage industry greatly. If they go up by a penny the average rise for an artic is around 15,000 per year. Prices rises also have a knock-on effect.
"If delivery costs more because diesel costs more how much is that going to push up the price of goods in the shops?"
Mr Butler added he had concerns about the 2p rise on fuel duty due to come into force in September.
He said: "Some operators will close because they just can't afford the increase. For firms running say, five drivers, it will cost an extra 40,000 per year."
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