Van Insurance News
FTA warns against fuel duty increase
28 November 2011
The Freight Transport Association (FTA) has warned the chancellor of the exchequer against going ahead with the planned three pence per litre fuel duty increase from January 1st 2012, van insurance customers might be interested to learn.
According to the company's chief economist Simon Chapman, the proposed fuel hike is out of touch with the current economic climate and the government should be looking to reduce the price to stimulate growth.
The price of diesel has risen by over 13 per cent in the last year, which figures suggest has represented an additional cost of £1.4 billion to the road freight operating industry.
Mr Chapman added about the porposed fuel increase: "Higher costs can’t be passed on to customers, who are looking to reduce costs to offset lower levels of business activity. Nor will rate rises wash with consumers."
Earlier this month, MPs urged ministers to scrap the planned increase in fuel duty after an e-petition signed by 110,000 people meant the issue had to be discussed in the House of Commons.
At Express, we specialise in cheap van insurance for small van owners. See what we can do for you!
View other van insurance stories