A HAULAGE firm boss says the industry is in crisis and is predicting a major recession if the cost of diesel continues to climb.

Andy Tooth, the director of LV Transport Ltd, Norfolk Road, Gravesend, says he feels the battle against fuel prices is a "lost cause".

Diesel prices have hit an average of 96p a litre this month 1p more than the cost during the national fuel protests in September, while October saw the cost hit 97p.

The protests followed soaring petrol prices after Hurricane Katrina forced the evacuation of several American oilrigs and refineries.

Mr Tooth said: "The future looks bleak and some companies are choosing to get out while they can.

"Foreign hauliers are continuing to price us out of our own market and I predict a major recession within the next 18 months.

"Demand is falling and we've had no Christmas rush. People are turning to cheaper options and you can't hold it against them.

"The British haulage industry is in danger of disappearing. I would love to see the Government give us a chance to run our businesses comparably with others.

"At the moment we have no choice other than to wait and see what happens."

Fellow haulier Nigel Mason, of Connect Freight, based at the Europa Trading Estate, Erith, also feels the price of fuel is still too high.

He said: "I agree it is a bleak time. Hauliers just don't seem to be being backed by the public, which has to change.

"I suppose the Government feels people are content now the cost of unleaded has fallen but so many garages are persisting with high diesel costs and incredibly, people are still buying.

"I think the public is unaware of the repercussions of paying higher prices. It might just be a few pence for them but when you're filling up a truck it makes all the difference.

"I am urging people to make a stand and boycott these garages. If you buy from them then you are supporting higher prices which are crippling our industry."