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The rise in fuels “suffocates” transport and Tradime asks for the reduction of the hydrocarbon tax

“Asphyxiated”. This is how the Aragonese freight transport companies are due to the skyrocketing fuel prices. It was denounced yesterday by Tradime, the Aragonese business association that represents them, which recalled that the “historic increase of 35% in the price of fuel and the general increase in suppliers is suffocating the sector”.

This rise has meant, as explained by the organization, that if just a few months ago fuel accounted for around 40% or 45% of the cost of production, now this percentage has increased to 60% and even 70%. It is not the only expense that has skyrocketed. The price of tires, Tradime insisted, has also increased by 14%.

“We are experiencing an unprecedented price escalation that absorbs all our benefits,” lamented José Antonio Moliner, president of the Business Association of Discretionary Merchandise Transport of Aragon. Because, as he insisted, “the problem is to transfer to our billing the rise in costs not only of fuel, but also of wheels or other suppliers”. In fact, the business representative explained, to compensate for losses, “each carrier must calculate their expenses and negotiate individually with their shipper the increase in their service, in accordance with the law, which could range between 10% and 12%.”

Moliner regretted that this new economic blow comes precisely at a time when the sector was beginning to recover from the serious crisis caused by covid. That is why he asked that “both the Government of Spain and the European governments would have to do their part because they are collecting much more percentage-wise, both for the tax on hydrocarbons and for VAT.”

Reduction

Among the measures that could help alleviate the complicated situation, Moliner highlighted the reduction of the special tax on hydrocarbons, which currently represents around 32% of the fuel price. “If this tax were reduced, we could alleviate this situation, since the shippers absolutely refuse to assume this increase, and it would be a way that the full burden does not fall on the carrier,” he said.

Not only the high production costs worry the freight transport sector in Aragon. The new regulations also worry its professionals.

In fact, Moliner stressed that the business organization is unaware of the reason why the Mobility Package has not been transferred to Spanish law, “so it cannot be applied,” he lamented. Because, as the president of Tradime explained, the implementation of this regulation and the fact that the cooperatives of associated workers were contemplated within the General Social Security Regime, would make all professionals equal when it comes to working in them terms. “We would all have to assume the same expenses and not suffer from unfair competition,” Moliner added.

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