Record diesel prices in the UK are threatening to force coach operators to cut services, including school transport, while hauliers warn that hundreds of firms could go out of business. The average price of diesel on UK forecourts hit a fresh record of more than £2 a litre last week, as the war in the Middle East continues to disrupt global fuel supplies.
Coach Operators Warn of Unsustainable Fuel Costs
Alison Edwards, director of policy at the Confederation of Passenger Transport (CPT), said the cost of fuel had "surged this year to unsustainable levels, pushing coach operators' already tight margins to breaking point." She called for urgent government action, warning that without intervention, soaring prices will mean difficult decisions on the availability of services, including home-to-school transport, and the viability of businesses.
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Edwards highlighted that 85% of independent coach operators are family businesses, and urged the government to provide temporary support with the cost of diesel. While local bus operators in England have already received help with fuel costs via subsidies, coach companies—which say they carry out a similar role—have received no equivalent support.
Haulage Sector Under Similar Strain
Richard Smith, managing director of the Road Haulage Association (RHA), said the haulage sector was under similar strain. "Businesses in our sector operate on slim profit margins, typically about 2%," he said. "The unprecedented rise in fuel costs is pushing hundreds of firms to the brink of collapse." The RHA has called for an essential user rebate on fuel duty to help keep hauliers on the road.
Comparing Fuel Cost Impacts Across Transport Sectors
| Sector | Average Profit Margin | Government Support | Risk Level |
|---|---|---|---|
| Coach Operators | 3-5% | None | High |
| Local Bus Operators | 5-7% | Fuel subsidies | Moderate |
| Haulage Firms | ~2% | None | Critical |
Key Takeaways
- Record diesel prices above £2 per litre are pushing coach and haulage operators to breaking point.
- Coach operators warn of cuts to services, including home-to-school transport, without urgent government intervention.
- Hauliers, operating on razor-thin margins, say hundreds of firms could go bust.
- Local bus operators receive fuel subsidies, but coach companies do not.
- Industry bodies are calling for temporary support and an essential user rebate on fuel duty.
What This Means for Businesses and Consumers
If coach services are reduced, it could affect school children, commuters, and tourists who rely on affordable group travel. For haulage, a wave of bankruptcies could disrupt supply chains, leading to shortages and higher prices for goods. The government faces mounting pressure to act, but any intervention must balance fiscal responsibility with the need to keep essential transport networks running.
FAQ
Why are diesel prices so high in the UK?
Diesel prices have surged due to global fuel supply disruptions caused by the war in the Middle East, combined with post-pandemic demand and limited refining capacity.
How could coach service cuts affect me?
If coach operators reduce services, you may see fewer routes, especially for school transport and rural connections, potentially leaving you without affordable travel options.
What support are coach operators asking for?
Coach operators are requesting temporary government subsidies to cover the cost of diesel, similar to those already provided to local bus operators in England.
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