The rising price of fuel for motorists is stalling the economy, according to the Road Haulage Association (RHA).
The UK has officially fallen back into recession, following a sharp drop in economic growth in the first three months of 2012.
The economy shrank by 0.2% in Q1, and a disappointing turnover during the Christmas period meant that the economy also shrank in the last three months of 2011, pushing the UK back into recession.
The RHA is blaming the recent blow to the economy on the high price of fuel.
RHA Chief Executive Geoff Dunning claims he's 'disappointed' that the UK has returned to recession, but believes that this was 'not unexpected.'
The fall into a second recession comes soon after Chancellor George Osborne announced the March Budget. The Chancellor announced plans to increase fuel duty tax by 4 pence as of August, adding further pain to the high price of motoring.
"Users of petrol and diesel fuels are desperate to see a reduction in fuel duty. The price of a tank of fuel would reduce and the subsequent savings would be put back into the economy, giving trade the boost it so desperately needs," said Geoff Dunning.
"The barrel price of oil now stands at its lowest level for quite some time. In addition, exchange rates are holding up well. Despite this, forecourt prices are still too high, with the margin on diesel having risen from 3.48ppl in March to 7.65ppl today. This is an increase of 123% or more than the August duty rise."
Dunning claims that the government has refused to listen to RHA advice addressing the issue of fuel duty, believing that the entire slip back into the recession "is a situation that could almost certainly have been avoided."
