The latest increase in fuel tax has been slammed by hauliers in Birmingham – with one labelling it ‘another nail in the coffin’ of the transport industry.

A one pence rise in the cost of a litre of petrol and diesel came into effect on Friday, bringing the average price of unleaded to 115.7p and 118.6p for diesel.

It’s more bad news for punters at the pumps.

But the increases are potentially crippling for hauliers who say they are already fighting to stay afloat.

Geoff Griffin, owner of Griffin Haulage, in Moseley, has worked in the industry for more than 30 years.

The 58-year-old said: “It’s another nail in the coffin. There will be no UK hauliers left in a few years.

“It’s a very desperate situation. Duty keeps increasing but we know damn well we won’t get a pay increase.

“We’re on the same money that truckers were on 30 years ago.” The increase equates to a hike in a trucker’s fuel costs of about £600 per vehicle.

Mr Griffin said it was highly unlikely that the tax rise would result in widespread blockades of oil refineries similar to those which brought the UK to a near standstill in 2000.

“There’s not enough unity in the trade for a blockade to happen,” he added.

“It’s so competitive out there now, with some of the bigger firms cutting rates to the point they are almost making losses.”

Richard Woodall, managing director of Woodall Transport (Birmingham) Ltd, based in Coleshill, said the impact of the increase would most likely be felt by employees in the sector.

He said: “It’s another kick in the teeth. It will be very hard to get that (tax rise) back from customers and is straight off the bottom line.”

Mike Farmer, director of the Road Haulage Association’s Midlands branch, said: “We lobbied extremely hard to stop this.

“It brings the amount of duty to 58.3p per litre – the highest in Europe. Against the backdrop of recession, this is an unfair tax.”