Soaring diesel prices, shrinking margins and mounting cashflow pressures are pushing UK road haulage operators towards breaking point, according to the Road Haulage Association (RHA).

The warning comes as the industry continues to absorb exceptionally high fuel costs, with many operators unable to recover the increases from their customers.

An RHA survey of 550 road transport businesses found that just 39 per cent were confident they could continue operating under current pressures before conditions became unsustainable. More than 90 per cent of respondents were SMEs.

The figures underline the vulnerability of a sector traditionally characterised by tight operating margins.

Some 84 per cent of operators reported reduced margins, while 56.8 per cent said higher fuel costs were putting pressure on cashflow.

Perhaps most significantly, the RHA says only around one in ten operators can fully pass higher fuel costs on to customers. Many companies are tied into existing contracts or face resistance from customers when attempting to introduce fuel surcharges.

That leaves hauliers absorbing a substantial proportion of the increase themselves.

£300 a week extra per truck

The scale of the problem becomes particularly clear when the additional cost is calculated at individual vehicle level.

According to the RHA, average UK diesel increased from around 142p per litre in February to more than 190p by late April. The association calculated that this represented approximately £300 per week in additional fuel costs for a typical HGV.

For an operator running ten trucks, that could potentially mean around £3,000 in additional weekly expenditure compared with February fuel prices.

The RHA says fuel typically accounts for around one-third of an operator’s costs, while haulage businesses can operate on margins of approximately two per cent.

Against that background, even relatively small movements in diesel prices can have a major impact on profitability.

Insolvencies remain a concern

There are also signs that prolonged cost pressures are taking their toll on the sector.

The RHA reported that nearly 400 hauliers went out of business during 2025, following around 470 the previous year. By July, approximately 150 businesses had already failed during 2026.

Haulage insolvencies in April were reported to be 22 per cent higher than April 2025 and 63 per cent higher than the previous month.

While fuel is not the industry’s only challenge, operators are simultaneously dealing with higher wages, finance costs, vehicle prices, insurance, maintenance and regulatory compliance.