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Fears food prices could rise as carriers warn to pay £173 more to fill HGVs

To exclude, to expel:

The average shipping cost of a 44-ton truck is now £173 a week higher than it was before the Ukraine war. Diesel hit a record £1.70 a litre, up 13p in a week. The average cost of petrol is £1.61 for the first time

Delivery bosses say they can't afford to absorb the increase
Delivery bosses say they can’t afford to absorb the increase

Record fuel bills are costing HGV companies an extra £70m a week, sparking fresh fears of soaring food prices.

Delivery bosses say they can’t afford to absorb the increase but will have to pass it on to stores.

Food prices are rising at their fastest rate since 2013.

And now it costs £173 a week more to load an average 44-ton lorry than it did before the Ukraine war.

Diesel hit a record £1.70 a litre, up 13p in a week, while petrol cost an average £1.61 for the first time. That was due to the highest inflation in 30 years with an increase in the cost of living partly due to soaring energy prices.

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It now costs £173 more a week to load an average 44-ton lorry than it did before the Ukraine war
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Elizabeth de Jong of Logistics UK, which represents the freight industry, said: “Operators cannot absorb the significant increase in fuel costs. Most of these increases will need to be passed on to customers.

“Fuel accounts for a third of HGV’s annual operating costs.” The Road Transport Association, which represents half of the UK’s 405,000 lorries, wants the Government to freeze fuel tax for two years.

It also wants an “essential user” discount for truck and passenger car companies of 15p/litre introduced.

“Now is not the time to hit carriers with even worse costs,” said Rod McKenzie of the RHA.

Andrew Opie of the British Retail Consortium, said: “Rising fuel prices are putting additional pressure on retail supply chains. This adds to cost pressures due to labor shortages, rising commodity prices and rising energy prices.

“Until some pressure eases, it is likely that prices will continue to rise.”

Meanwhile, analysis shows that the average annual cost of running a typical family car, including fuel, has risen by almost £300.

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https://www.mirror.co.uk/money/fears-food-prices-could-go-26451213 Fears food prices could rise as carriers warn to pay £173 more to fill HGVs

Fry Electronics Team

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