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Hauliers concerned by impact of rising fuel costs

Hauliers say they fear it will become uneconomical for drivers to take their trucks onto the roads if prices continue to increase
Hauliers say they fear it will become uneconomical for drivers to take their trucks onto the roads if prices continue to increase

Transport industry representatives are awaiting a response from the Government on demands they have made to ease the cost burden caused by growing fuel prices.

The Russian invasion of Ukraine has resulted in supply issues relating to oil and gas from eastern Europe and recent weeks have seen petrol and diesel costs increase by as much as 40 cents per litre.

Hauliers say they fear it will become uneconomical for drivers to take their trucks onto the roads if prices continue to increase and they want Government support in the form of a suspension of some taxes, such as excise duty, or an enhanced diesel rebate.

A rebate not exceeding 7.5 cents per litre was introduced during an earlier financial crisis but the sector says a new rebate of 25 cents is needed to keep the industry moving.

Minister for Finance Paschal Donohoe met officials from the Irish Road Hauliers Association earlier to discuss the situation.

"We brought home to the minister in no uncertain circumstances the times we are in," IRHA president Eugene Drennan said after the meeting in Dublin.

"We're now into war, the troubles of wartimes, and we cannot keep abreast of the price of fuel. It is rising daily at an enormous cost; we absolutely have to get supports for the industry as quickly as possible."

A spokesperson for the Department of Finance said Minister Donohoe "met the IRHA, listened to their concerns, and will consider the matters raised".

"Something's going to have to give, it's not sustainable for fuel prices to keep going up and rates to say the same."

One of the biggest logistics companies in the country is Nolan Transport, based in New Ross in Co Wexford and with as many as 600 trucks on the roads of Ireland, the UK and continental Europe at any time.

"Fuel has increased since 1 February by up to 40 cent per litre, which has a huge effect on the transport industry and 40 cent in our business is 10% of a price increase. It has a major effect on our customers, their costs are all increased which will end up back to the consumer in the shop," Kevin Nolan said.

Kevin Nolan said they need support from the Government via an increased rebate

He said the price of goods such as food, drinks, pharmaceuticals, fertiliser and more, will all be affected if the crisis continues.

"Everything is back to the [Ukraine] war," he explained. "The fuel just goes up day by day, every day the fuel goes up, three cent, 10 cent; so it's over 40 cent since the start of February. We believe it's going to continue. You will see it at the pump very soon: €2 per litre."

He said they need support from the Government via an increased rebate.

"We have an essential user system set up in Ireland. It's a maximum of 7.5 cent per litre [rebate] and we need that increased to at least 25 cent per litre or more. Other countries in Europe have that already in place, we don't."

In Rosslare, truck drivers passing through have been hit by the rocketing prices.

"Fuel prices have gone through the roof in the last week or two," driver Niall Dowd said, "so it's just gone crazy altogether.

"Something's going to have to give, it's not sustainable for fuel prices to keep going up and rates to say the same."

Vilmos Buki described the rise as "madness" in recent weeks

Ollie Buckley said he has seen a change just getting to his truck-driving job.

"In the car it has cost me a lot more just to travel up and down to work, €20 a week, I notice the difference. That's €80 a month. It's affecting everyone."

Vilmos Buki described the rise in fuel prices in recent weeks as "madness".

"It's so high, it's nearly €2. In Wexford I saw it at 1.99.99... How long can they pay this?"