Chancellor Alistair Darling's decision to stagger the forthcoming fuel duty rises will serve only to delay the inevitable, according to industry experts.
Yesterday's (March 24th) Budget included plans to increase duty by 1p per litre from April 1st, rather than introduce the inflation-busting 3p rise that was expected.
The Freight Transport Association (FTA) said the move will provide "welcome relief" for the transport sector, but claimed logistics firms will still suffer in the long term.
"For companies struggling to stay afloat, a staggered approach to increasing fuel duty will provide some breathing space," said FTA's managing director of policy and communications James Hookham.
However, although the full 3p hike is now not due to take effect until January 2011, the staggered approach would only delay the detrimental impact of any rise in fuel duty on the economy, he added.
Mr Hookham also accused the chancellor of being "disingenuous" in his Budget announcement by failing to mention the loss of the biofuel differential, which he said will add an extra 1.5p per litre to the cost of diesel.
Nevertheless, the FTA did find some encouragement from the Budget, welcoming plans to invest heavily in developing the UK's road transport infrastructure.
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