Key facts
- Coach operators warn record diesel prices could force cuts to services, including school transport.
- The average price of diesel in the UK exceeded £2 a liter last week.
- Alison Edwards of the Confederation of Passenger Transport (CPT) stated fuel costs have surged to unsustainable levels.
- 85% of independent coach operators are family businesses, according to the CPT.
- Richard Smith of the Road Haulage Association (RHA) noted haulage sector operates on slim profit margins, typically around 2%.
- Hauliers are calling for a pause on fuel duty rises and a rebate to offset diesel costs.
Coach operators in the UK are warning that record diesel prices could force them to cut services, including essential home-to-school transport, and potentially lead to business closures. The average price of diesel on UK forecourts reached over £2 a liter last week, a level described as unsustainable by industry representatives.
Alison Edwards, director of policy at the Confederation of Passenger Transport (CPT), stated that soaring fuel costs are pushing already tight margins for coach operators to breaking point. She called for urgent government intervention, including temporary support with diesel costs, noting that 85% of independent coach operators are family-run businesses.
The Road Haulage Association (RHA) echoed these concerns, with managing director Richard Smith highlighting that haulage businesses typically operate on profit margins of about 2%. He noted that hauliers are paying an extra £350 per week per truck compared to before the Iran war, leading to hundreds of transport businesses going bust this year.
Rhys Hackling, managing director of Direct Connect Logistics, described the impact on his company as "absolutely enormous." His firm, which runs 22 lorries, is spending over £300 more per week on fuel, with monthly costs rising from approximately £50,000 to nearly £65,000. Many hauliers operate on fixed contracts, which leaves them unable to pass on increased fuel costs and squeezes their margins entirely.
In a move that could potentially ease fuel prices, G7 leaders announced on Friday they would release up to 100 million barrels of emergency diesel and crude oil stockpiles. This decision was partly a response to suggestions from Donald Trump that he might ban diesel exports, which had driven up US prices. The benchmark Brent crude oil price declined by nearly 1% on Monday to just over $101 a barrel. The UK's transport minister, Keir Mather, has stated that the country's fuel supply is resilient and there is no need for concern about shortages.