Supermarket diesel cuts are good news for haulage 04 January 2016

Four UK supermarkets have today (4 January 2016) cut the price of diesel at forecourt pumps to under £1.00 a litre – the first time we have seen such figures since 2009.

The cuts reflect further falls in the oil price, which is now at its lowest for 11 years, with UK Brent crude currently trading at just below $38 (£26) per barrel, having lost 35% over the previous 12 months.

The FTA (Freight Transport Association) is describing the development as good news for haulage industry, pointing out that fuel represents around a third of annual operating costs.

“Today’s announcement is good news for commercial vehicle operators,” comments FTA deputy chief executive James Hookham – although he adds that the wider fuel market needs to become more responsive to crashing oil prices.

“The FTA has long campaigned for a cut in fuel duty as a way to help encourage growth in the economy, and backs the FairFuelUK campaign,” he continues.

That said, he reminds operators that, at £1 per litre, 60p is fuel duty and about 16p will be VAT, so the biggest winner is the Chancellor.

“We need to see the government helping businesses at these uncertain times with a further reduction in fuel duty in the Budget this March,” insists Hookham.

Members of the FTA can use the FTA Fuel Card, which offers discounted fuel prices and interest-free credit.

Author
Brian Tinham

Related Companies
Freight Transport Association Ltd

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