Rising oil prices crush cost hopes

Procurement bosses hoping to drive down transport costs are in for a rough ride after oil prices reached their highest level for 13 years.

The Freight Transport Association warned that the volatility in the global oil market brought on by the continuing instability in the Middle East, coupled with chancellor Gordon Brown's 1.9p/litre increase in the price of diesel from September, would send haulage costs soaring.

The trade body estimated the increase would push up industry costs by £250 million a...

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