Haulier warns fuel price rise is 'not sustainable'

2 hours ago

Stuart RustSouth of England

News image — Stephen Bennett said a rise in the price of diesel had increased his company's costs by about £3,000 a week

Stephen Bennett Stephen Bennett, a young man with a reddish beard, is pictured looking at the camera. He is wearing a green cap with "BENNETTS" printed on it. — Stephen Bennett said a rise in the price of diesel had increased his company's costs by about £3,000 a week

A haulage company has introduced a fuel surcharge for the first time in its history after a sharp rise in costs linked to the Iran war.

Stephen Bennett, from Bennett's Haulage in Reading, said his diesel bill had gone up by about 35% in eight weeks - adding about £3,000 a week to his costs.

The firm, which operates 12 vehicles, has introduced a fuel surcharge of between 7% and 10% for customers.

Fuel surcharges are designed to adjust transport costs in line with diesel prices and are widely used across the haulage industry.

Speaking to BBC Radio Berkshire, Bennett said haulage companies typically operate on tight profit margins, meaning the recent spike in fuel costs was impossible to absorb.

"With an increase in cost of 35%, it's not sustainable," he said.

He said the company had absorbed rising costs for several weeks but had now been forced to act.

"For the first time in our history, we are operating a fuel surcharge," he added.

The Road Haulage Association (RHA) said operators across the UK were facing similar pressures.

Getty Images Three lorries can be seen face on driving down a dual carriageway. Two of the lorries are just about side by side, with another following close behind. — The Road Haulage Association said operators across the UK were facing pressures

It warned that higher fuel bills would "inevitably" be passed on to customers and could have an inflationary impact on everyday goods.

The organisation said disruption to global oil supplies had pushed up diesel prices, with some firms reporting increases of about 30% in recent weeks.

Bennett said customers were now paying an extra £50 to £100 a day on average, depending on the work.

He is concerned rising costs could have consequences for jobs if the pressures continue.

"Some employees have been working for us for more than 20 years. They're closer to family than employees," he said.

"It would have a massive impact if we couldn't continue to run as we do."

A Treasury spokesperson said the government had extended a 5p cut to fuel duty until September to help drivers and would ensure motorists get "a fair deal at the pump".

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