Northumberland Logistics Leader Urges Fuel Tax Relief as Energy Costs Surge

Northumberland Logistics Leader Urges Fuel Tax Relief as Energy Costs Surge

A prominent figure in the North East transport sector has warned that skyrocketing oil prices are placing an unsustainable burden on the haulage industry. This trend will eventually force the price of everyday consumer goods to rise. Alan Ferguson, Executive Chairman of Cramlington based Fergusons Transport, is calling on the UK Government to temporarily slash fuel duty to help businesses navigate the current geopolitical instability in Iran.

The appeal comes as new data from the RAC reveals a sharp spike in fuel costs. Since the onset of the current regional conflict, petrol prices have climbed by an average of 25p (19%), while diesel has surged by 48p (34%), now averaging over 190p per litre. These increases follow military actions by the USA and Israel against Iran, leading to a blockade of the Strait of Hormuz. As one of the world’s most vital global shipping arteries, this closure has severely choked the global crude oil supply.

Mr. Ferguson highlighted the specific strain on logistics operations, noting that the cost to refuel a single heavy goods vehicle has jumped from £300 to roughly £450. This represents a 50% increase in just a few months. He described the current climate as more severe than the energy crisis sparked by the war in Ukraine, noting that fuel now accounts for over 30% of daily overheads, up from the usual 25%. This pressure is further intensified by consumer panic buying at petrol stations.

As a company that has operated for over a century, Fergusons Transport provides essential services for major regional employers like Nissan Sunderland and delivers critical medical hardware such as MRI scanners.

With industry profit margins typically sitting between only one and two percent, Ferguson warned that hauliers have little choice but to pass these expenses down the supply chain. He noted that while a two week ceasefire was recently announced, the long term energy outlook remains volatile.

The haulage chief pointed out that current taxes, including a 53p per litre duty on diesel plus 20% VAT, mean that nearly half of the price paid at the pump goes to the Treasury. He argued that North East firms are particularly vulnerable due to the region’s geographic isolation, which necessitates longer travel distances. Ferguson concluded that a reduction in fuel duty would provide a vital lifeline for transport businesses and help curb the broader national trend of rising inflation.

Daniel Harper

Daniel Harper is a transport and logistics specialist with experience in fleet operations, distribution planning and supply chain efficiency. He focuses on improving delivery performance while maintaining strong safety and compliance standards.

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