Hauliers warned on Tuesday of increased costs and possible disruption due to a spike in diesel prices in Europe.

The Association of Maltese International Trailer Operators (ATTO) said prices had gone up in several countries. In Italy, retail prices are exceeding €2 per litre, triggering significant cost escalation across the trailer and freight industry, with estimates suggesting additional weekly sector costs in the region of €80 million. 

“Diesel, which typically accounts for 30% to 40% of operating costs, is now placing extreme pressure on carrier margins”

ATTO Chairman Joseph Bugeja said early signs of disruption caused by fuel shortages were also becoming more evident.

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“Alongside sustained cost pressures, we are seeing isolated instances of fuel supply constraints in parts of Italy. While not yet systemic, these warrant close monitoring,” he said in a statement.

“To date we have not experienced systemic uplift failures, though drivers have occasionally encountered stations with limited availability,” said Antoine Vella of Express Trailers. “Rising diesel costs are now requiring continuous monitoring and rapid operational adjustments.”

He added that the volatility is increasingly affecting planning and network reliability.

“With vehicles operating across Europe, refuelling has become more critical and is adding complexity to daily operations. The uncertainty in the current environment could have significant implications for Malta’s logistics chain,” he said.

GMC Transport reported fuel cost increases of 20% to 30% over recent months, with margin compression of up to 40%. Director Mark Buttigieg said pricing pressure was now forcing urgent rate reassessments across client contracts.

Concorde’s Jonathan Vella said operators were responding with tactical mitigation measures.

“We are refuelling earlier, relying on larger motorway stations, and avoiding low fuel thresholds before entering Italy or France,” he said. “Even minor delays can now cascade into missed ferry schedules and trailer rotation disruption.”

He noted that cost inflation across EU corridors remains severe, with diesel up approximately 35% over three months and 37% over six months.

While the Italian government has reduced excise duty and introduced tax credits for transport operators to ease pressure on the haulage sector, those measures were being outpaced by the scale of cost increases.

At the same time, concerns were being raised that part of the recent diesel price escalation may be driven by speculative pricing dynamics, amplifying volatility beyond underlying market fundamentals and intensifying financial strain across operators, the association said.  

Bugeja emphasised Malta’s structural exposure as a fully import-dependent island economy.

“With no overland alternatives, Malta is entirely dependent on the reliability of European transport corridors. Around 55,000 trailer movements annually underpin national trade flows, and any sustained disruption, whether it’s cost-driven or physical, can rapidly impact economic stability,” he said.

ATTO concluded that while domestic fuel pricing measures offer partial insulation, Malta remains exposed to external corridor volatility, as most absolute fuel uplift occurs outside the country.

“The association will continue to monitor developments closely and engage stakeholders where necessary to safeguard supply chain continuity,” it said.