Food and drink wholesalers today (May 20) welcomed the government announcement that the planned 5p increase in fuel duty will now be paused until the end of 2026.
Food & Drink Wholesale UK (FWD) has been engaging with the government to highlight the impact that rising fuel and transport costs, driven by ongoing instability in the Middle East, would have on wholesalers, supply chains and food prices.
“This is a welcome decision for the sector,” said James Bielby, CEO, FWD. “A rise in fuel duty would have had a significant impact across the food supply chain at a time when businesses are already facing considerable cost pressures.
“Fuel is not a discretionary cost for wholesalers – it is fundamental to keeping shelves stocked, hospitality supplied and communities served. Increased transport costs ultimately feed through into higher costs across the supply chain and additional pressure on food prices.
“We welcome the government’s recognition of these challenges and its decision to provide greater certainty and support for businesses operating at the heart of the UK’s food distribution network. Ongoing dialogue between the government and industry will be important to ensure that, where needed, further measures can be taken to support businesses and further protect food supply resilience.”
Paul Nieduszynski, CEO, Sysco GB said: “As the nation’s largest foodservice wholesaler, Sysco GB recognises the importance of measures that help to manage operating cwHOosts and support price stability for customers, including many public sector organisations.
“Given the ongoing conflict in the Middle East and the accompanying rising fuel prices, we welcome the Chancellor’s decision to extend the 5p fuel duty cut until the end of 2026. This will provide much needed relief to businesses across the wholesale sector and wider food supply chain.”
The decision marks a positive step in supporting the resilience of the UK’s food and drink wholesalers and demonstrates the value of continued engagement between the government and industry on the practical pressures facing the sector.