The National Union of Road Transporters of Romania (UNTRR) calls on the Government to take urgent measures to limit the increase in fuel prices, including the reduction of taxes and excise duties for commercial road transport.
“The global price of oil has reached its highest level since 2008 amid economic instability and sanctions related to the crisis in Ukraine. Average diesel prices, including VAT and excise duties, have risen by 16% since the beginning of the month. Such a short – term increase is stifling the cash flow of road hauliers, which is so badly affected by the pandemic,” the UNTRR release says.
According to UNTRR representatives, diesel is usually billed twice a month with a 15-day payment term, while transport activity is billed several times a month and payment is made every 30/60/90 days.
According to the quoted source, due to the increase in fuel prices, road hauliers consume their credit limit on diesel cards much faster, so they have to pay the accumulated balance in advance.
“Road operators work at very low margins, so they have to pass cost increases to customers, otherwise they risk bankruptcy which would put additional pressure on supply chains. Almost all the goods we use every day – food, clothing, cosmetics, electronics, appliances, vehicles and car parts, etc. – are transported at one point in the supply chain by a truck. Given that for a road transporter the cost of fuel is more than a third of the operating costs, In the absence of real measures from the Government, the entire population and the economic sectors in Romania risk serious inflationary consequences,” it is also specified in the release.
Therefore, UNTRR representatives call for urgent action by the Government to limit the rise in fuel prices by reducing taxes and excise duties on fuel for road transport operators, noting that otherwise the population and companies will suffer the most, due to the uncontrolled increase in the costs of commercial road transport.
“In the absence of quick and concrete measures, road hauliers will be unable to pay their diesel suppliers. The indexation of transport tariffs with the increase in diesel prices must be done in real time, so we ask the Romanian authorities to intervene to support the road transport industry. Otherwise, supply chains will be severely affected, with severe consequences for the entire population,” the statement said.