FTA - No support for fuel protests
May 25, 2004
The Freight Transport Association says that although its members, operating
over 200,000 lorries, are angry at the Government’s high fuel tax
policy they will not participate in demonstrations or blockades which would
disrupt fuel supplies. FTA members’ anxiety is to deliver the goods,
whether to industry customers or private consumers, and they will not support
actions that inhibit fuel supplies to the disadvantage of goods vehicle
operators or the general public. They will not demonstrate against Government
policy by taking actions that will hurt customers. However, there can be
no doubt that the current high level of fuel prices is a major problem
for the whole of UK industry, specifically for the transport industry,
and ultimately for the whole population.
FTA has called for a temporary reduction in the high level of fuel duty
paid in the UK and believes that dealing with current high oil prices
is more important that the prospect of the scheduled duty increase of
1.9 pence per litre in September. Massive hikes in the price of oil in
the past weeks have seen pump prices rise to well over 80 pence per litre – an
increase five times that of the one planned by the Chancellor.
FTA Chief Executive Richard Turner said, ‘The Chancellor has scheduled
a 1.9 pence per litre increase in fuel duty for 1 September 2004, but
fuel costs have already risen by five times this amount. I am confident
from the long-term dialogue FTA has had with the Treasury that no government
would increase fuel duty if prices remain at this level.
‘Our focus instead must be on how the impact of the massive upturn
in energy costs will affect business and everything we do now. We must
ensure that UK maintains its competitiveness and ability to operate in
the short-term. If the 10 pence rise in fuel prices persists, or increases,
UK industry will have to shoulder extra costs of over £1.35 billion – that
is nearly £5,000 on the annual operating cost of the largest articulated
truck. There is nowhere else for this extra cost to end up than with
the consumer.
‘FTA has therefore asked Government to consider making a temporary
reduction the existing high level of taxation for truck fuel to take
the heat out of the current prices. 10 per cent of the price of every
product bought in a supermarket is the costs of the transport to get
it there. If fuel prices rise by 10 pence per litre, this will put transport
costs up by 5 per cent and, on average, will up the cost of everything
we buy in the shops by half a per cent.’
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