Fuel price fears surge among UK logistics and transport firms

Rising diesel costs are putting increasing pressure on haulage and logistics businesses across the UK
Rising diesel costs are putting increasing pressure on haulage and logistics businesses across the UK

Nearly six in 10 UK transport and storage businesses are now seriously concerned about rising fuel prices, with anxiety over costs increasing sharply across the wider economy.

New analysis by parcel delivery comparison site Parcelhero, based on the latest Office for National Statistics (ONS) figures, reveals that 59.8% of transport and storage firms are very concerned about fuel price increases.

The figure represents a rise of 16.8 percentage points from the 43% recorded in early August, highlighting growing pressure on businesses reliant on road transport and distribution.

The findings come from the ONS Business Insights and Conditions Survey, which gathered responses between 21 September and 4 October.

Across all UK industries, 38.2% of businesses reported being very concerned about rising fuel costs, compared with 27.3% in August.

Transport and storage remains the most concerned sector, with just 7.2% of businesses saying they were not worried at all.

However, manufacturing has experienced the sharpest increase in anxiety, with the proportion of firms reporting serious concern more than doubling from 23% in August to 48.4%.

Parcelhero Head of Consumer Research David Jinks said the findings highlighted the growing financial pressures facing businesses responsible for moving goods across the country.

“Fuel is the lifeblood of the transport and storage sector, so it’s no surprise transport & storage businesses are the most alarmed.”

He noted that concern among transport firms had increased steadily, while manufacturing businesses had experienced a particularly sharp rise in recent weeks.

The latest figures show that 52.2% of transport and storage businesses were very concerned in a later August survey, rising to 54.5% in early September before reaching 59.8%.

Meanwhile, wholesale and retail businesses have also reported growing unease, with 42.9% now very concerned about fuel prices, up from 32.6% in mid-September.

When businesses reporting being somewhat concerned are included, the figure rises to 79.8% for wholesale and retail, compared with 83.9% in manufacturing.

The findings raise concerns about the potential impact on supply chains, including businesses transporting agricultural goods, fresh produce and food products.

Higher fuel bills for hauliers and couriers could create additional pressure on distribution costs, potentially affecting manufacturers, retailers and their customers.

Mr Jinks warned that rising transport expenses could have consequences throughout the supply chain, from production and warehousing to final deliveries.

He said: “Manufacturers have caught up fast, and their worry has more than doubled in a matter of weeks.”

Retailers could also face higher delivery charges and fuel surcharges as transport operators respond to increased operating costs.

Mr Jinks added: “Shoppers and small businesses should expect pressure on delivery pricing, and should compare carriers carefully rather than assume rates will hold.”

Despite the immediate concerns, Parcelhero believes technological developments and the adoption of alternative fuels could help strengthen the sector's longer-term outlook.

The company says advances in cleaner fuel technologies could support greater efficiency and resilience across transport and logistics businesses.

Its latest industry report, *Delivering the Future*, examines these developments and the changing outlook for the delivery industry.

However, with diesel costs continuing to cause concern, the latest survey findings suggest fuel prices remain a significant challenge for UK transport operators and the wider businesses that depend on them.