As the blockage of the Strait of Hormuz continues there are growing fears from UK hauliers they will be unable to survive the cost of fuel in the medium term.

The blockage of the Strait has also prompted the UAE, Saudi Arabia, and Iraq to look to investment into new pipelines to bypass the strait, but while oil prices have stabilised they are still far above the cost per barrel before the conflict began.

Now the UK’s Road Haulage Association (RHA) has warned only 4 in 10 operators (39%) are confident of surviving as fuel prices soar 35%in three months

It added Britain’s road transport operators (haulage, coach and van firms) are being pushed to breaking point by soaring fuel costs.

The new RHA survey highlights that fuel prices have leapt by over a third since the Iran conflict began three months ago, leaving many of the businesses that keep the nation’s shelves stocked and goods moving fighting for survival.

The association is calling on the Government to introduce an Essential User Rebate, a targeted measure that would help firms cut the cost of moving people and goods and ease the pressure forcing prices up for customers.

RHA managing director, Richard Smith said: “Just 39 per cent of businesses are confident they can keep going under current pressures before it becomes unsustainable. That is a stark picture of the conditions transport operators are currently working in.

“We need the Government to act now. We are calling for an Essential User Rebate to help businesses in our key sector reduce the cost of doing business and relieve inflationary pressure. Seven in ten operators told us a rebate would reduce the need to raise prices for customers.”

The Government recently cut red diesel duty, so it already recognises that fuel price shocks are hurting the transport sector. The RHA is calling for the same for users of white diesel. (Context: Red diesel is the cheaper, lower-taxed fuel for off-road machinery like tractors and generators, while white diesel is the standard, fully taxed fuel powering vehicles on our roads).

Smith added: “With firms fearing the worst, eight in ten told us their already razor-thin margins are being squeezed, with rising fuel prices creating cashflow problems. This is an issue demanding immediate action. The measures we’re calling for would provide respite and give businesses the confidence to look ahead without the spectre of insolvency hanging over them.”

Looking further ahead, the RHA is also calling for fuel duty increases to be delayed indefinitely, scrap plans to link fuel duty to RPI from next April. The association has written to the Chancellor and relevant ministers, urging a meeting to discuss these issues.