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WHY THE UK NEEDS AN ESSENTIAL USER FUEL REBATE

Nikki Redhead, Managing Director, Keep It Cool

 

While the UK government has largely stayed quiet on fuel support for commercial operators, the rest of the world hasn’t been as passive.

The Road Haulage Association (RHA) published a breakdown of how other countries are responding to the current fuel crisis, and the contrast with the UK is hard to ignore.

 

Whilst the World is Acting, the UK is Watching.

Governments across the world have recognised that fuel is not a commercial problem, but rather a supply chain problem, and left unaddressed, it becomes everybody’s problem.

The RHA article shares examples of how Australia has halved fuel excise, cut diesel by around 26 cents per litre and provided up to A$1 billion in interest-free loans for transport businesses. Meanwhile, Norway has temporarily reduced diesel by around 25 cents per litre. France has introduced financial support for transport, agriculture and fishing. Germany is limiting pump price increases and pushing for an EU-wide windfall tax on energy companies alongside Italy, Spain, Portugal and Austria.

The logic is both stark and consistent; fuel costs do not disappear; they simply move along the chain.

An operator absorbs what they can, then passes the rest to the customer. The customer passes it to the retailer. The retailer passes it to the shelf. And at the end of that chain stands a household already making difficult choices about what they can afford to put in their trolley, now paying more for their weekly shop because a problem that started at the fuel pump was never intercepted.

Every country that has stepped in with targeted support has done so because they understand this. Protecting transport operators is not about protecting business margins. It is about stopping a cost that starts with diesel from ending up on the kitchen table.

The UK has not yet acted in a meaningful way, and the longer this remains the case, the further down the chain the cost travels, until it has nowhere left to go but the people least able to absorb it.

 

The Case for a Rebate

The RHA is calling for an Essential User Fuel Rebate for commercial operators, pointing out that the mechanism already exists. For example, the Bus Service Operators Grant provides a rebate for bus operators, and the Rural Fuel Duty Relief scheme supports rural motorists.

It’s clear that the infrastructure to do this is already in place, however, the decision to actively implement it is what’s missing.

For businesses like Keep It Cool, fuel is not a discretionary cost; it sits between 25% and 50% of our total operating costs. When fuel costs rise and there is no active relief, operators face a straightforward choice: absorb the cost or pass it on.

 

What We Are Asking For

The ask is not complicated. A targeted rebate for commercial vehicle operators; trucks, vans, coaches, that provides some relief while fuel prices remain elevated. We’re not asking for a permanent subsidy or special treatment, but rather the same level of practical support that Australia, Norway, France and others are already providing to their transport sectors.

Other countries are not waiting for conversations to turn into action. They are acting now, because they understand that keeping goods moving is not optional.

It is time the UK did the same.

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