What do four pints of milk, a pack of apples, 1kg potatoes, a box of Sugar Puffs and a litre of diesel have in common? They all cost £1.43. Yes, you heard correct, diesel is now a record 143p per litre. Madness! How are transport and fleet companies expected to survive with this ever increasing overhead?
We checked out the AA’s Monthly Fuel Price Report for January 2011 which showed the average diesel price at 132p per litre – that means we’ve seen a 12p per litre rise over the last twelve months. Ok, so you might not think 12p is a lot in the grand scheme of things, but consider the average size of vehicle fuel tanks:
- Average two-litre car holds approximately 80 litres of fuel per tank
- Transit LCV van – 150 litres of fuel per tank
- Sprinter van – 200 litres per tank
- Standard HGV – 250 litres per tank
- Double HGV – 480 litres per tank
That’s an increase of between £9.60 and £57.60 per tank, depending on your vehicle. Now consider the impact if you have a fleet of vehicles; it’s simply unsustainable. We spoke to David Allen, partner at C S Allen and Sons, who said: “I’m literally turning work away because I don’t want to spend money on fuel. It’s cheaper not to do some of the work because the cost of the fuel is so high. The way things are at the minute, customers are going to have to pay more for the service we provide or we’ll all be out of business.”
Unsurprisingly, a recent survey has shown drivers cite high fuel prices as the most annoying thing about motoring in Britain today. More than 40 percent of all motorists say soaring petrol or diesel prices annoy them the most, the research from breakdown cover provider Autonational Rescue found.
However, the bad news is that analysts are predicting this is only going to get worse after oil-rich Iran announced it was cutting exports at once to Britain and France in retaliation for EU sanctions over its nuclear programme. The cost of a barrel of crude hit an eight-month high of $121 earlier this week and motorists were warned pump prices could shoot up by 20p per litre within six weeks.
On top of this, the Government has planned a 14 pence a gallon rise in petrol and diesel tax in August. Our economy simply can’t sustain this and it would lead to surging unemployment, a return to recession, a growing deficit and years of economic misery. It could make us the next Greece.
Join The Fuelcard Company and FairFuelUK in our call for Chancellor George Osborne to cut fuel duty in next month’s Budget, and helps us show them a cut in fuel duty will create jobs, stimulate growth and generate extra tax revenue as a result. In other words, it’s in the Government’s own interest to cut fuel taxes – even they will be better off!