Many of Britain’s supermarkets have axed the price of diesel at the pumps to under £1 a litre for the first time in seven years.
The cuts reflect further falls in the oil price, which is at its lowest since 2005. UK Brent crude oil is currently trading at just below $38 (£26) per barrel, having lost 35% over the year.
Fuel represents around a third of annual operating costs for freight operators and the Freight Transport Association (FTA) says that the high price of fuel is its members’ number one concern.
The FTA’s James Hookham said: “We need to see the wider fuel market become more responsive to ever lower oil prices. The announcement by leading supermarkets is good news for commercial vehicle operators.”
The FTA has lobbied long and hard for a cut in fuel duty as a way help encourage growth in the economy. It also supports the FairFuelUK campaign, which has been spurred forward by the logistics industry, and since it was formed in 2011 has helped to secure a better deal for Britain’s motorists.
“Never forget that at £1 per litre – 60p is fuel duty and about 16p will be VAT,” said Hookham.
“The biggest winner is the Chancellor. We need to see the Government helping businesses at these uncertain times with a further reduction in fuel duty in the Budget this March.”