Fuel Prices and Haulage Industry

Dear constituent,

Thank you for contacting me about rising fuel prices and the road haulage industry.

I appreciate your concerns on this issue and the difficulties being faced by hauliers. As the Road Haulage Association (RHA) highlights, they are operating under severe pressures with huge increases in fuel and other costs.

I know that the RHA has called for the Government to introduce an essential-user rebate on fuel duty for lorry and coach operators. In response to questions on this issue, the Government has highlighted the temporary 5p cut in fuel duty announced at the Spring Statement in March, as well as previous freezes to fuel duty. However, as you know, fuel prices are in fact now higher than when the change was announced.

On 13 June, the Competition and Markets Authority (CMA) said it would carry out a short and focused review of the retail fuel market and provide advice to the Government on steps to improve outcomes for consumers. The review reported on 8 July. It found that the 5p fuel duty cut appeared to have been reflected in prices at the pump, but that there was cause for concern in the growing gap between the price of crude oil when it enters refineries, and the wholesale price when it leaves refineries as petrol or diesel. The CMA has launched a more detailed study of the road fuel market. I can assure you that I will continue to monitor this issue.

I hope the Government will give proper consideration to the concerns raised by lorry and coach operators, not only over rising fuel prices, but also more widely. And more generally, I believe the Government needs to stabilise the foundations of our economy by providing emergency support for business, reducing their costs and limiting the price rises they pass on to consumers.

Thank you once again for contacting me about this issue. I can assure you that I will continue to keep in mind the concerns you raise.

Yours sincerely,

Peter Dowd MP