Making Sense of Logistics
Cost reduction news: FTA and others attack fuel duty increase

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Cost reduction news: FTA and others attack fuel duty increase

Tuesday, 01/9/2009 06:21
An increase in fuel duty has caused the Freight Transport Association (FTA) and other industry groups to voice their concerns on the impact this hike may have on the logistics sector.

With cost reduction at the forefront of many companies' minds, the collective £810 million "burden" the rise will bring is not good news, according to the FTA.

Jo Tanner described the point some businesses to be at as "breaking point" and questioned whether such a "greenwash" was really appropriate at the current time.

She also remarked on the logistics industry's alleged position as the "government's cash cow", because despite efforts to reduce carbon emissions and use cleaner vehicles, no money will be left to invest further in this if fuel duty continues to rise.

"While higher fuel costs may force private motorists onto public transport, logistics doesn't have that luxury," Ms Tanner concluded.

RAC Foundation director Stephen Glaister also commented on the 2p increase.

He said most drivers are likely to feel the brunt of the charge.

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