A Sheffield haulage and logistics company has backed the Chancellor of Exchequer’s decision to cancel a rise in fuel duty later in the year.
A potential rise in fuel duty in September 2013 would have cost the company a further £1,500 a quarter.
David Clarkson, managing director of DBL Logistics, said:
The scrapping of the fuel duty increase is good news for businesses such as ours. The price of fuel continues to increase and any additional cost on top of this would have severely hampered our long-term plans.
We are a growing company, with exciting developments for the future and we want this to continue. We are starting work on constructing a new warehouse in Sheffield which will significantly increase our operations further with more vehicles on the roads.
Mr Clarkson has now called on George Osborne MP to help reduce the price of fuel which on average rose four pence a litre in February, the biggest single monthly increase since January 2011.
Currently, we use around 50,000 litres of fuel each quarter and this is likely to increase as the business expands. We hope the Government will continue to look at ways of ensuring fuel costs continue to be kept at a minimum to allow businesses to transport goods more effectively.
DBL Logistics, which is set to commence construction of a new £2million, 33,500sqft warehouse and office building on Tinsley Park Road, Sheffield, is a member of UPN (United Pallet Network) and employs 22 people.
It has seen turnover increase to more than £3million a year and the new warehouse development, which is expected to take around six months to complete, will enable DBL Logistics to significantly expand its warehouse capacity from 1,500 pallets space to around 6,000.