September Fuel Duty Hike Could Put 98% of UK Food Supply at Risk
A scheduled fuel duty increase in September could drive prices sky high, with a staggering 98 per cent of the UK's food supply potentially "at risk" in a looming supply chain crisis. David Boot, director of public affairs and policy at the Road Haulage Association (RHA), issued this stark warning during an interview with GB News, highlighting the critical link between fuel costs and national food security.
"98 per cent of food is delivered on the back of trucks," Boot emphasized. "This isn't a niche issue. When fuel prices rise, it hits businesses immediately, and for many, those costs are passed on. That has a real impact on inflation."
Projected £7 Billion Cost to Households
According to detailed RHA modelling, a 5p per litre rise in fuel duty from September—as is currently planned—could impose a colossal financial burden on UK households, amounting to as much as £7 billion by the end of the decade. This projection underscores the severe economic repercussions of the policy change.
"We need the Treasury to sit down with us," Boot urged. "Without intervention, businesses will struggle to do what they're obliged to do day-to-day." The call for government action comes amid a backdrop of escalating global tensions and economic uncertainty.
Global Conflicts and Rising Fuel Prices
Oil and gas prices have surged significantly due to the ongoing US-Israel war in Iran, creating additional pressure on the transport sector. With no clear indication of how long the conflict will persist, economists have raised alarms about the potential impact on the global economy and the cost of living for consumers worldwide.
In the UK, petrol prices have already jumped to an 18-month high, according to motoring organisation the RAC. This prompted Prime Minister Sir Keir Starmer to issue a warning last week, stating that his government "will step in" if fuel companies "try to rip off customers."
Calls for Long-Term Solutions and Investment
While acknowledging that governments have the capacity to act—referencing past interventions—Boot stressed the necessity for a more sustainable approach. "We know Governments can act, we saw that before," he said. "But what we also need is a longer-term solution."
Boot elaborated on the need for pragmatic measures, stating: "It's not a silver bullet. We need to focus on the low-hanging fruit, shorter journeys and lighter loads, while working with Government on the bigger challenges." He advocated for a comprehensive dialogue on road pricing, cautioning that "If we get this wrong, we increase inflation. It's as simple as that."
Highlighting the broader economic benefits, Boot added: "Investment in roads isn't just good for our sector, it's good for the entire economy." He noted that the RHA engages with all political parties and expressed optimism that fuel duty is now a topic of political discussion, but emphasized: "What's positive is that politicians are now talking about fuel duty. But we need action, not just words."
