Pictured above: Michael Conroy

Palletforce Plc chief executive Michael Conroy is urging the Prime Minister not to backtrack on plans to introduce a fuel duty stabiliser.

David Cameron recently suggested plans that formed part of the Conservative's election manifesto to cap petrol prices could be revived.

However he has since told motorists not to 'raise their hopes' and said although he had asked the Treasury to look into the proposals, it is a 'difficult issue'.

Mr Conroy is the Chief Executive of Palletforce Plc, the UK's leading member-owned palletised distribution network made up of more than 100 of the UK's top hauliers.

This week he warned that the government needs to heed the views of the transport industry.

"The government should not underestimate how important our industry is to the nation's economy," said Mr Conroy.

"It is our members' trucks on the roads that enable other businesses to deliver their goods to stores and customers, ensuring a constant flow of trade and cash. Escalating fuel prices cause huge problems for our operators and eventually result in price increases that will push up inflation.

"Higher fuel costs also cause problems in the retail sector, which in turn reduces transport volumes. Putting up prices at the pumps gives consumers less money to spend which means that stores have fewer goods to deliver and transport. This combination of higher costs and lower volumes is a lethal mix for the transport sector, on which the UK is wholly reliant.  

"As an industry we operate with very little margin and are already dealing with other austerity measures such as the VAT rise. With petrol prices already at a peak any move towards limiting fuel prices would go a long way to providing some security and breathing space for transport companies of every size."