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Tow Truck Firm Says Fuel Prices Have Cost It £10,000, Calls for Duty Cut

A UK towing business says rising fuel costs have hit its bottom line by around £10,000, and is calling for fuel duty to be cut by up to 50p a litre.

· 2 min read · language: en
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BBC Business

A tow truck business has said that rising fuel prices have cost the company around £10,000, according to a report from BBC Business, as the operator calls on the government to cut fuel duty significantly to ease the pressure on companies reliant on road transport.

The business argues that fuel duty would need to be reduced by between 30p and 50p per litre to meaningfully offset the impact of higher pump prices on operating costs.

Pressure On Transport-Dependent Businesses

For businesses such as towing operators, fuel represents a significant and largely unavoidable cost, since vehicles must be dispatched regardless of price fluctuations. A sustained rise in fuel costs can therefore have an outsized effect on profitability compared with businesses that are less dependent on continuous road travel.

The report highlights a broader concern among small and medium-sized transport-reliant businesses in the UK, many of which have limited ability to pass rising costs on to customers without risking a loss of business.

It remains unclear whether the government plans any changes to fuel duty in response to such calls. Fuel duty levels are typically reviewed as part of the UK's annual budget process, and businesses across the transport sector have periodically pressed for reductions during periods of elevated fuel prices.

Sources

EGazette summarizes reporting from multiple sources; follow the links for the originals.

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