The German road freight association has warned that the sharp rise in diesel prices is placing a significant strain on the haulage industry and called on the government for help.

Since the start of the war in Iran, the price has risen by around 40 cents ($0.46) per litre, said Dirk Engelhardt, head of the Federal Association of Road Haulage, Logistics and Waste Management (BGL).

With a monthly mileage of 10,000 kilometres and fuel consumption of 30 litres per 100 kilometres, this results in additional costs of around €1,200 per month for a lorry, he said.

In recent years, the average fuel consumption for larger lorries has been between 35 and 40 litres per 100 kilometres.

For a fleet of 50 vehicles, this amounts to more than €700,000 per year. “It stands to reason that this could have an impact on consumer prices sooner or later,” Engelhardt said.

As diesel prices rise, the transport sector is calling on the government for support. Swift measures are needed that do not involve a lot of bureaucracy to secure companies’ liquidity and maintain supply chains, Engelhardt said.

A diesel price cap would also help limit the burden on businesses and prevent insolvencies among small and medium-sized enterprises. Further measures could include a refund of the CO2 levy on diesel or a suspension of the CO2 component of the lorry toll.

What counts is that the measures are targeted and reach transport companies directly, he said.

Many companies rely on what are known as diesel floaters to hedge against price fluctuations. These are price escalation clauses agreed upon in individual contracts that operate in both directions.

But often, it takes time for them to take effect and these can only cushion the current burdens to a limited extent. “And many small transport companies do not have such hedging mechanisms at all – the costs hit them immediately,” Engelhardt said.