Fuel duty rise cancellation welcome, but industry must do better21 March 2013

Cancellation of the 1.89 pence per litre fuel duty increase, planned for 1 September 2013, in yesterday's (Wednesday 20 March 2013) Budget, has been broadly welcomed by the transport industry.

However, the FTA (Freight Transport Association) has also expressed disappointment that the pleas of industry and consumers to reduce fuel duty were ignored.

In its pre-Budget submission to the Chancellor, FTA said that, to ease cost pressure on domestic freight activity and stimulate economic growth through consumer demand, road fuel duty should be reduced by 3 pence per litre – with commensurate reductions in the duty rate for gas oil.

"While we are relieved that the immediate danger has passed, in order to get the UK back on the road to economic recovery it is vital that we have a cut in fuel duty and a long-term strategy to prevent future rises and uncertainty," states James Hookham, FTA's managing director of policy and communications.

"The Chancellor has once again squandered an opportunity to support UK industry, jobs and economic recovery, by failing to reduce fuel duty rates," he adds.

And he makes the point that, while duty rates for natural gas and biomethane have been fixed for a another year relative to diesel rates, that does nothing for any future with gas-powered trucks.

Payback period, he asserts, is at least 10 years and the fragility of the business case for these vehicles is such that uncertainty over even small increases in gas duty rates "renders investment uneconomic".

Meanwhile, Nick Mitchell, of Trimble's field service management division, points to the increasing importance of proactively managing fuel efficiency.

Fleet management and telematics technology have come to the fore as solutions able to tackle the efficiency challenge, he comments, and many organisations already using the technology have reported fuel savings of as much as 2 gallons per vehicle per day.

Businesses are able to optimise schedules and route planning, helping to reduce unnecessary mileage and improve fuel efficiency and driver proficiency, he points out.

"By enabling companies to monitor fuel consumption, miles per gallon and CO2 outputs, the technology can ultimately help to reduce fuel use and improve a company's carbon footprint."

And Ian Featherstone, of the Energy Saving Trust, adds: "Most businesses are aware of how much they spend on fuel across their fleets, but we are surprised how few of those we have worked with initially understood individual vehicle efficiencies.

"Without this, it is extremely difficult to measure the impact of driver training or other interventions. Telematics technology is an enabler that can help mitigate fuel cost increases and aid planning for a sustainable future."

Author
Brian Tinham

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