The UK government has announced that the 5p cut in fuel duty will be extended for a further 12 months, a move welcomed by the freight and logistics sector as operators continue to face significant cost pressures.
The announcement, which also includes a 12-month holiday on vehicle excise duty (VED) for HGVs, is intended to help businesses manage rising operating costs and ongoing supply chain challenges.
Responding to the news, the British International Freight Association (BIFA) said the decision showed that government is listening to industry concerns.
Steve Parker, BIFA director general, said:
BIFA has been a strong supporter of a campaign around fuel duty and we are glad to see that the government has taken onboard our concerns… The announcement of a 12-month holiday on vehicle excise duty for HGVs should also help the freight forwarding and logistics businesses that BIFA represents cope with the higher costs affecting the international supply chains that they manage.
Fuel remains one of the largest costs for road freight and logistics operators, with many businesses continuing to deal with inflationary pressures, volatile energy prices and increased wage costs.
While welcoming the extension, BIFA reiterated its call for longer-term measures to provide greater certainty for the sector.
Parker added:
BIFA has consistently called for long-term certainty and a dedicated fuel duty stabilisation mechanism rather than incremental, temporary postponements… The association has long pressed for the introduction of an essential user rebate to support the competitiveness of British freight and logistics companies. We will carry on with our lobbying on those matters.”
Industry stakeholders have argued that maintaining lower fuel duty rates is essential to supporting supply chain resilience and helping logistics businesses continue investing in fleet renewal, sustainability initiatives and operational efficiency.
The latest extension is expected to provide short-term relief for haulage, freight forwarding and logistics companies across the UK as the sector continues to navigate challenging economic conditions.
