Another cost for merchants.
Transport costs to rise next month
Published: 31 December, 2010
KENT: Merchants face additional costs for transport with the latest increase in fuel duty planned for 1 January 2011.
The increase of 0.76p/litre from January is the third rise since April 2010 and will push diesel prices to within four pence a litre of the all-time highs reached in July 2008 when oil prices were at $145 a barrel.
The Freight Transport Association condemned the increase. Simon Chapman, the association's chief economist, said: "Diesel is not an optional extra for industry. Rises in fuel commodity prices have already left operators facing diesel prices nine pence per litre higher than a year ago – adding £3800 a year to the bill of running an articulated truck.
"This latest fuel duty increase, together with those previously introduced this year will add a further £1 200 a year," he said.
Diesel currently represents 35% of the cost of running a truck. Duty on diesel rose by 1p/litre to 57.19p/litre on 1 April 2010 and by a further 1p/litre to 58.19/litre on 1 October 2010. It is set to rise by another 0.76p/litre on 1 January 2011 to 58.95p/litre.
Fuel duty represents 56% of the cost of a litre of bulk diesel (excluding VAT) as at 17 December 2010.