The government’s decision to cut fuel duty in today’s Spring Statement (23 March 2022) will help logistics businesses to afford to keep supplying the nation with the goods it needs in the face of increasing fuel prices and other inflationary pressures, as Elizabeth de Jong, Director of Policy at Logistics UK, comments:
“With average fuel prices reaching the highest level on record and rising inflation, there has been an unstainable burden on logistics businesses which operate on very narrow margins of around 1%; the Chancellor’s decision today will help to ensure operators can continue to afford supplying the nation with all the goods it needs, including food, medicine and other essential items. Fuel is the single biggest expense incurred by logistics operators, accounting for a third of the annual operating cost of an HGV. The cut in fuel duty of 5ppl will result in an average saving of £2,356 per year per 44-tonne truck; this move will help to strengthen the UK’s supply chain during a time of ongoing financial and operational challenges.”
Logistics UK wrote to Rishi Sunak MP, the Chancellor of the Exchequer, on 10 March 2022 urging for a cut in fuel duty.