Removal firms are being forced to absorb sharply higher fuel costs rather than pass them on to home movers as competition for business intensifies in a subdued housing market.
Redpath Moving & Storage says its diesel costs have increased by around 40% during 2026, putting additional pressure on margins alongside rising prices for other supplies.
The company says a 100-litre tank now costs around £56 more to fill than at the beginning of the year. But with households already facing higher borrowing and moving costs, the removal firm says increasing prices risks making it less competitive.
The pressure comes as the wider housing market continues to struggle for momentum, reducing the pool of transactions available to removal businesses.
MARGINS SQUEEZED
Redpath Moving & Storage Founder Dennis Rogers says: “Rising fuel prices have had a significant impact on our business, with our diesel costs increasing by around 40% in 2026 alone. A 100-litre fill-up now costs approximately £56 more than it did at the start of the year, creating a substantial additional expense for a business that relies on vehicles to transport customers’ belongings.
“We experienced a sharp increase in costs following the pandemic, which was challenging enough, but I can’t recall seeing such a significant rise over such a short period of time. With little indication of when prices might begin to fall, it is becoming increasingly difficult to plan for the months ahead.”
Rogers says the impact is not confined to vehicle costs, with increases also feeding through into packing materials and other operating expenses.
He adds: “This means we are facing increased expenses across several areas of the business, at a time when the housing market remains challenging and competition for customers is fierce.
“As a result, we are unable to pass these additional costs on to clients without risking becoming less competitive, meaning we are having to absorb the increases within our existing margins.”
Rogers says the combination of higher fuel costs and subdued housing activity is putting significant pressure on profitability across the removals sector.
