Coach services could be cut due to record diesel prices, operators warn

Record diesel prices are threatening to cut back on services, including school transport, as hauliers warn that rising fuel costs are pushing hundreds of firms out of business. The average price of diesel on UK forecourts hit a record of over £2 a litre last week due to global fuel supply disruptions caused by the war in the Middle East.

Alison Edwards, director of policy at the Confederation of Passenger Transport, stated that fuel costs have surged this year to "unsustainable levels," putting coach operators' already tight margins at breaking point. She called for urgent action without intervention, difficult decisions on services like home-to-school transport may be made, and businesses could struggle to survive.

Richard Smith, managing director of the Road Haulage Association, echoed these concerns, explaining that hauliers typically operate on slim profit margins of around 2%, making the high fuel costs a significant challenge. He noted that businesses are now spending an extra £350 a week on each truck compared to pre-war Iran levels.

Hauliers are demanding a pause on planned fuel duty increases and a rebate to offset the cost of diesel. The RAC motoring organization has also called for the government to expand the 5p fuel duty cut, which has been extended until the end of the year. However, many hauliers work on fixed contracts with customers, meaning that rising fuel costs can completely wipe out their margins.

If these issues persist, it could lead to the collapse of haulage firms, resulting in job losses and a reduction in work opportunities. In a potential relief, G7 leaders announced they would release up to 100 million barrels of emergency diesel and crude oil stockpiles, partly in response to Donald Trump's threat of a diesel export ban.

This move should help alleviate diesel prices, especially since Britain relies on the US for about a third of its diesel imports. However, the transport minister, Keir Mather, assured the public that the UK's fuel supply is "inherently resilient" and that people should not be concerned about shortages.