Diesel price warning from hauliers

A 30% INCREASE in road diesel prices will force more members of the Irish Road Haulage Association out of business, the lobby group warned last night.

IPE Brent crude oil futures plunged more than $1 a barrel to a new two-month low of $29 yesterday evening, knocked down by expectations of a short war on Iraq and further talk of tapping US strategic reserves.

Prices have fallen by almost 14% since the middle of last week as big investment funds pulled out of crude markets in anticipation a war in Iraq would start soon and end quickly.

This will ease pressure on Irish diesel prices following the latest rise before the weekend when fuel rose a further 4.5 cent a litre. The Irish Road Haulage Association (IRHA) said they could not rule out a fuel surcharge if prices remain high.

IRHA spokesman Jimmy Quinn, said: “Many of our members are having a very difficult time at the moment, with many large companies going to the wall. Unless we get moral and practical assistance from this Government, we will be staging a day of action across the country as the costs are now out of control.”

Meanwhile, gold for April delivery was up $1.30, or 0.4%, at $337.90 as of 10:34am on the Comex division of the New York Mercantile Exchange after rising as much as $8.70 in early trading.

Gold futures, which touched a six-year intraday high of $390.80 on February 5, were 17% higher than at this time last year.