Some of the UK's road transport firms could be "on the brink" as businesses struggle to deal with expensive fuel costs, a new report has warned.
Research from the Road Haulage Association (RHA) states that less than four in 10 operators are confident that they can survive because of huge fuel price hikes.
In the last three months alone, fuel prices have shot up by 35 per cent as a result of the war in Iran and the constantly fluctuating cost of oil.
At present, drivers are paying 158.7p per litre for petrol and 182.26p for diesel, with RAC Fuel Watch forecasting that prices should continue to fall in the near future.
Despite this, diesel drivers face costs of over £101 for a standard 55-litre family car tank, with hauliers paying even more for larger vans and trucks.
The research also found that 71 per cent of haulage, coach and van firms said a rebate would reduce the need for them to raise customer prices.
Businesses already struggling with costs could be forced to pass higher prices onto customers, creating further issues for a wider range of people and companies.
A concerning 84.6 per cent of firms have reported margin reductions, while more than half have reported cashflow pressure.
The Road Haulage Association has called for urgent intervention from the Government to protect businesses
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Richard Smith, managing director of the RHA, stated that companies could soon be operating in an unsustainable manner, describing it as a "stark picture".
He called on the Government to "act now" and introduce an Essential User Rebate to help businesses reduce costs and relieve pressure.
Mr Smith highlighted how the majority of operators reported that help from the Government would prevent customers from facing even higher bills.
The RHA pointed out that the Government had recently cut the duty on red diesel, which is typically cheaper and attracts lower tax for off-road machinery.
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Nationwide petrol and diesel prices recently reached the highest prices since the summer of 2022
| PAIt is again calling on the Government to consider introducing a similar measure for so-called "white" diesel to help the transport sector.
In May, the Government confirmed that it would be cutting the fuel duty rate on red diesel by more than a third from June 15 until the end of the year.
This formed part of a package of measures introduced by Chancellor Rachel Reeves and Prime Minister Sir Keir Starmer in a bid to support motorists struggling with costs.
Mr Smith added that the issues at hand demanded "immediate action" to prevent disastrous consequences for the industry.
Labour recently announced a fuel duty cut for red diesel
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He said: "With firms fearing the worst, eight in 10 told us their already razor-thin margins are being squeezed, with rising fuel prices creating cashflow problems.
"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."
The RHA is also calling on the Government to delay any fuel duty increases indefinitely, as well as scrap plans to link fuel duty to inflation from next April.
It has written to Chancellor Rachel Reeves and relevant ministers, and has called for an urgent meeting to discuss issues at hand.