Road hauliers fear fuel cost rise

Some hauliers may go out of business if rises continue

Rising diesel costs mean many transport businesses are struggling to survive, road hauliers have said.

The Road Haulage Association said if prices continued to surge, some hauliers would go out of business.

Observers say this week diesel prices matched the highest on record, achieved briefly last October, when they hit more than 87p a litre.

The chancellor has extended the freeze on diesel duty, effective since last April, until at least the autumn.

But hauliers say that the move, announced by Gordon Brown in his budget, will do little help.

We could be faced with another fuel demonstration if the government doesn't take action Paul Newton East Anglian Hauliers Group 'Diesel costs are strangling my firm'

The Road Haulage Association says diesel prices have been rising steadily during the past five or six weeks. And operating margins for hauliers have never been tighter.

Hauliers fear this week's rise in crude oil prices will feed through into even higher diesel costs.

A barrel of the benchmark Brent crude rose above $56 (£29) for the first time - an increase driven by surging world demand for oil, especially from China.

Diesel prices have been more acutely affected than petrol, possibly because recent cold weather in America has increased demand for diesel for heating.