Transport organisation IRU has launched a 17-point emergency plan for governments to tackle rising fuel prices and the implications for transport networks, energy security and decarbonisation plans.
According to the group, which represents road transport businesses around the world, diesel prices are up by 63 per cent globally since January 2021, spiking since the Ukraine war and with no end in sight to volatility.
IRU said fuel price rises have hit operator margins by 9% in two months, but their net profit margins are often little more than 3%. Meanwhile, escalating fuel prices are driving inflation through the global economy, with supply chains face blockages, with the risk of small operators going bankrupt which will further breakdown mobility and logistics networks, IRU warned, meaning they are less able to invest in new vehicles to decarbonise.
Radu Dinescu, IRU President, said: “Road transport operators are facing a cash flow crunch, especially the 90% who are small and medium sized firms. “Volatility in diesel prices and inflexible commercial terms mean they have little room for manoeuvre and bankruptcies are climbing.
“This will damage road transport network capacity and efficiency, impacting supply chains, inflation and the broader economy. We need to act now.”
IRU’s emergency plan includes 17 government actions to support road transport operators, especially in alleviating fuel price volatility, and to realign decarbonisation roadmaps to the new realities of increasing energy insecurity.
Umberto de Pretto, IRU Secretary General, said: “IRU’s emergency plan steers government action in key areas to make sure that road transport continues to underpin economic growth and social health, avoid excess inflation, and keep our industry and transport in general on track to meet our decarbonisation targets.”
For more information, visit www.iru.org