Hikes in Fuel Costs

If you are a haulage company or truck owner the news that fuel is about to hit an all time high will be about as welcome as having to change every lorry tyre for your whole fleet in one go. And yet record fuel prices are what we are all facing in the months to come.

The AA has warned that prices at the pump could rise above the £1.20 a litre level for petrol and diesel as an increase in fuel duty and a thirst for profits within the large petroleum companies reaches a crescendo.

For a truck or HGV owner such a rise could be devastating, placing further inflationary pressures on a host of goods being carried.

Edmund King, president of the AA  said it was a tough time for motorists and HGV owners.

“We are barely out of recession, yet petrol prices threaten to rise to record prices seen during the boom of 2008 — shortly before the collapse into recession,” he said.

The news of fuel hikes – which could add thousands of pounds a month to the average HGV haulage business fuel bill – comes as oil prices remain at relatively modest levels compared to where they were before the recession began.

And it is not just haulage businesses that will be affected; with a hike in fuel comes an increase in the prices of goods, and with it inflationary pressures for the whole economy.

‘A hike in fuel prices resonates throughout the entire economy and hits truck and HGV companies hardest. We hear every day from HGV business owners who admit that the increases are costing them tens of thousands a month.’

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This entry was posted on Friday, March 19th, 2010 at 3:33 pm and is filed under HGV (Haulage/Truck). You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.