Emergency Meeting on the Fuel Crisis

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Presentation transcript:

Emergency Meeting on the Fuel Crisis Juliette Brussels, 26 June 2008 © International Road Transport Union (IRU) 2008

Latest fuel price increase - a dramatic development Source: national associations, TCS © International Road Transport Union (IRU) 2008

Latest fuel price increase - a dramatic development Source: national associations, TCS © International Road Transport Union (IRU) 2008

Who gets what from one litre of diesel fuel in the G7 countries in 2008? 28% 30% 38% 51% 49% 52% 56% US$/litre Based on the UK fuel price at the pump, a barrel of oil would cost almost 400 $ Source: national Governments, OPEC 2008 © International Road Transport Union (IRU) 2008

Maritime bunker fuel: No Tax! Railway energy: subsidised by the state No level playing field! Airline fuel: No Tax! Maritime bunker fuel: No Tax! Railway energy: subsidised by the state Source: national associations, TCS © International Road Transport Union (IRU) 2008

Consumer prices of diesel fuel and heating oil per 1,000 litres in 2008 35% less 40% less 50% less UK FRANCE GERMANY Source: EU Oil bulletin 2008 © International Road Transport Union (IRU) 2008

Impact of the fuel price increase on profitability of transport operators Simplified fuel cost calculation for a transport service in the UK Truck performance: 200,000 km/year Contract duration: 90 days Mileage per contract: ~ 48,000 km Fuel consumption: 36 litre / 100 km Fuel consumption per contract: 17280 l Fuel costs as per day of contract: 24883 € (38719 $) Real fuel costs: 27148 € (42243 $) Loss due to fuel price increase: 2265 € (3524 $) Source: national associations, TCS © International Road Transport Union (IRU) 2008

To mitigate consequences of the fuel price increase… Message from the Associations to the fleet operators …introduce fuel escalator clause or don’t transport ! Source: www.iru.org © International Road Transport Union (IRU) 2008

Message to Governments: To mitigate consequences of the fuel price increase… Message to Governments: Dramatic fuel price increase is killing many transport companies. Road transport is a vital production tool. Therefore, the overall fiscal and heavy tax burdens should be reduced and the provocative proposals on internalisation of external costs must be withdrawn. Introduce a single professional fuel duty - significantly below the current minimum - applicable to all commercial transport industries (road, air, rail, maritime). Implement these measures immediately and enter into a constructive dialogue. © International Road Transport Union (IRU) 2008

Juliette © International Road Transport Union (IRU) 2008