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IRU calls on urgent road transport fuel price action to avert economic crisis

INTERNATIONAL NEWS10 March 2022
venzini pratirio kafsimon

IRU calls on urgent road transport fuel price action to avert economic crisis

 

Brussels, 9 March 2022 – IRU calls for urgent government action on rising commercial road transport fuel prices, including capping fuel prices and cutting fuel taxation, to avert a wider economic crisis.

Commercial goods and passenger transport operators in all regions report a bleak picture in terms of soaring fuel prices, as also outlined by IRU members meeting this week in Brussels. 

IRU is calling for urgent action to cap fuel prices for commercial road transport and reduce or rebate taxes and excise on fuel for commercial operators. 

Global oil prices, this week reaching their highest level since 2008, are set to climb higher amid continuing instability and sanctions related to the Ukraine crisis. 

Average diesel prices, including taxes and excise, across the 51 countries in all regions that IRU tracks on a weekly basis, have risen by 33% over the past 12 months. With wafer-thin margins, operators must pass on cost increases to users or risk bankruptcy and further pressure on transport networks.

“Commercial road transport operators are struggling with rapidly escalating fuel prices. Some are already on the verge of bankruptcy, but if road transport does not work properly, already stretched supply chains will be affected even more. The biggest losers will be operators’ clients, the ordinary citizens and businesses who will suffer if commercial road transport costs spiral out of control.”

RADU DINESCU

IRU President

All multimodal goods transport and most multimodal passenger journeys depend on commercial road transport services for all or part of the route. 

Compounded by ongoing post-pandemic pressure on global supply chains and mounting inflation, commercial road transport cost increases are already seriously affecting communities and businesses all over the world. 

“Almost everything eaten, worn or used by the world’s population is transported by truck at some point in its supply chain. If commercial road transport cost rises are not urgently contained, by capping fuel prices and cutting fuel taxes for operators, all communities and sectors of the global economy risk serious inflationary consequences. IRU calls on governments to act urgently.”

UMBERTO DE PRETTO

IRU Secretary General

 

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