1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40
41
42
43
44
45
46
47
48
49
50
51
52
53
54
55
56
57
58
59
60
61
62
63
64
65
66
67
68
69
70
71
72
73
74
75
76
77
78
79
80
81
82
83
84
85
86
87
88
89
90
91
92
93
94
95
96
97
98
99
100
101
102
103
104
105
106
107
108
109
110
111
112
113
114
115
116
117
118
119
120
121
122
123
124
125
126
127
128
129
130
131
132
133
134
135
136
137
138
139
140
141
142
143
144 
The only way is up
Page 16
If you've noticed an error in this article please click here to report it so we can fix it.
Last month Commercial Motor investigated how hauliers were coping with the slow but gradual rise in the pump price of diesel. To keep operators on top of their costs CM brings you the AA's Fuel Price Report for May.
Words; Christopher Wattor
THE PUMP PRICE for diesel has continued to creep up over the past month to an average of 103.5 pence per litre (ppl) as of 15 May as the UK became the second most expensive country in Europe in which to buy fuel.
However, according to the AA Public Affairs Fuel Price report, diesel prices might well be rising but they are doing so at a much slower rate than petrol because of over-supply of diesel to the UK.
The most expensive regions in which to buy fuel through the pump are London and the east of England. with an average of 104ppl; with the South-east not far behind at 103.9ppl (see map). Northern Ireland (102.6ppl) and Yorkshire and Humberside (102.7ppl) are the cheapest regions in the UK to buy diesel.
During May, 63.62% of the pump price was taken as tax, part of the reason why only Norway tops the UK with 104.07ppl for diesel. Italy comes third at 100.59ppl, Steve Clarke. general manager of the Fuel Card People, says: "The biggest disadvantage for the haulier is being charged pump prices."
The company offers a "pay-as-you-go" card for hauliers to purchase fuel based on a price set the previous week. Clarke believes that using a card with a set price for fuel, rather than one that relates to the pump price, is the easiest way for hauliers to maintain control of their costs.
The price of oil had been falling and there was general downward pressure 510 because the pound was falling too. It is difficult for our customers and we are trying to do our best to lower the price," he says.
The company pre-purchases fuel in bulk ahead of resale on the card and while Clarke admits there was a "bit of a surge" in the weekly price after the 2p duty increase in April it has remained relatively steady over the past few months.
Coping with the gradual creep upwards in the price of fuel at the coalface is leading some hauliers to make brave decisions on contracts, says Paul Arthurian of Paul Arthurton Transport in Norfolk.
"We deal with the price of fuel customer to customer and we have a fuelprice escalator in place. But as a haulier you have to negotiate on a rate-by-rate basis and you have got to have the guts to walk away.
"What is dictating the price now is the availability of lorries. There are probably more lorries available than loads at the moment. No matter what you do, there will always be somebody who does it cheaper," he says. lo