RHA predicts further fuel hike in tomorrow's Budget

The Road Haulage Association (RHA) is waiting to see if Alistair Darling will announce yet another hike in fuel duty in tomorrow's Budget.

If an increase of at least 2p/litre goes ahead as expected on 1 April, fuel duty (petrol and diesel) will have risen by an average of 1% a month for 16 months, claims the RHA.

Before the fuel duty increase in December 2008, fuel duty stood at 50.35p/litre. It rose by 1.84p/litre in April 2009 to 52.19p/litre, then by 2p a litre in September 2009 to its current level, 56.19p/litre. A further 2p increase in April would take duty to 58.19p/litre - an increase of 16% in 16 months.

"The Chancellor will be known for an astonishing ratcheting up of duty levels in the depths of recession - and our duty level was already by far the highest in the EU," says RHA director of policy Jack Semple.

"Transport companies will be pressing customers for higher rates to cover higher costs. Mr Darling could do his bit by recognising the impact on the transport industry and urging firms to pay their contractors sustainable rates," he adds.

*For the latest reaction to the Budget and what it means for the road transport industry, log on to www.roadtransport.com from 12.30pm tomorrow (24 March).