IRU backs release of oil reserves

IRU, the world road transport organisation, backs the release of oil reserves to curb rising commercial road transport fuel prices.

Road transport operators are facing soaring and volatile fuel prices.

The ongoing conflict across the Middle East has affected fuel prices through oil supply disruptions, particularly around the Strait of Hormuz.

IRU backs action to level out fuel prices by releasing oil reserves, and also calls for reducing fuel taxes, which in most cases make up a significant portion of the cost at the pump.

Prior to the start of the conflict, Brent was trading at around USD 70 a barrel. On 9 March, it nearly doubled to USD 120, resulting in a direct increase at the pump.

Operators – the vast majority of which are SMEs with razor-thin margins, around 1-2% – are often not in a position to pass on the extra costs fully and immediately, putting further pressure on transport networks.

“Buses, coaches, taxis, vans and trucks are the lifeline of society, keeping us clothed, fed, healthy and supplied with life’s essentials,” said IRU Secretary General Umberto de Pretto. “Without such immediate action by national governments, the consequences would be passed down to consumers and already struggling economies.” 

Commercial road transport is also the glue that links all transport modes together, making mobility networks and supply chains function. It’s the mode that delivers first- and last-mile connectivity. 

“If rising commercial road transport costs are not contained by capping fuel prices, the conflict will have a considerable impact at the global scale,” said Umberto de Pretto. “Such urgent actions by governments are desperately needed.”

IRU will continue to monitor fuel prices and advocate for immediate action to limit the impact on transport operators and, by extension, society.