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Nearly six out of 10 UK transport and storage businesses are now “very concerned” as record diesel prices intensify the pressure on them, prompting calls for government support.
Diesel prices hit a record average of £2.01 per litre on 2 October, up 40.5% from the 142.38p at the end of February, according to the RAC.
The UK Road Haulage Association (RHA) estimates operators are paying around £350 more on fuel for each truck every week, compared with pre-Middle East confict. For a 50-vehicle fleet, that equates to almost a £1m a year extra, if the increase persists, leaving businesses with little room to absorb further costs.
New Office for National Statistics (ONS) data analysed by Parcelhero reveals that 59.8% of transport and storage businesses were “very concerned” about fuel prices, revealed in a survey conducted between 21 September and 4 October. This compares with 43% in August and 38.2% across all UK businesses.
And shippers are also feeling the pressure, the proportion of businesses also ‘very concerned’ more than doubling, from 23% in August to 48.4%, in the latest survey.
David Jinks, head of consumer research at Parcelhero, warned that the effects of rising fuel costs could ripple throughout the supply chain, from factories and warehouses to consumers.
“Retailers are less exposed on paper, but they are the businesses that ultimately feel hauliers’ and couriers’ fuel costs through delivery rates and surcharges,” he said.
The RHA is urging the government to introduce an ‘Essential User Rebate’ of at least 15p per litre for haulage, coach, and van operators for six months.
MD Richard Smith explained: “It would help protect margins, ease cash flow, and reduce pressure to pass further costs to customers. Ultimately, it would support the deliveries and passenger services our economy and communities rely on.”
Meanwhile, a survey on business confidence found that 82% of respondents identified a fuel duty cut as a measure that would give businesses greater confidence to invest and grow. A further 61% supported an Essential User Rebate for commercial operators.
Mr Smith also called for maintaining the existing fuel duty freeze and 5p cut, cancelling planned increases, and removing the automatic Retail Price Index link.
For operators, the immediate challenge is managing costs without compromising the services that keep goods moving. SNAP, which connects fleets with truck parking and other transport services, warned that rising diesel prices were compounding existing pressures from maintenance, insurance, and administrative costs.
Nick Long, SNAP’s head of commercial for the UK and Ireland, said: “When diesel reaches £2 per litre and businesses are potentially spending hundreds of pounds more per vehicle every week, the impact on a fleet can be enormous.”
He added that improving route planning, reducing unnecessary administration, and gaining greater visibility over spending could help operators navigate the pressure.
With haulage profit margins typically around just 2%, according to the RHA, sustained increases could force businesses to reconsider investment and pricing, with consequences extending across the wider economy.