The association said the increase, which will also apply to petrol for cars, will cost UK industry an additional £172 million in a full year ñ £86m in the six months before the next budget. However, the FTA is calling on the Chancellor of the Exchequer to suspend the planned increase because of turbulence in the global oil market.
In his budget last April the Chancellor said he would delay the usual annual increase in duty levels until October 1 because of war in Iraq and an expected volatility of oil prices. He also said that if the oil market remained uncertain he would consider not making any increase at all.
Now FTA ceo Richard Turner is calling on him to honour that consideration. "The continuing problems in Iraq and, as a consequence, with the oil market itself, have meant that the price of crude oil at over $28 per barrel remains higher than the $25 per barrel which applied at the time of the April budget and the decision not to increase fuel duty," he said.
"Fuel costs represent over one third of the costs of running a lorry
and operators can ill afford any increase whether resulting from the
basic price of the fuel itself or of the duty imposed by the government.
"I very much hope that the Chancellor will decide to defer the proposed October duty increase for the time being. However, at present lorry operators should expect and prepare themselves for increased pump prices."
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