Fuel prices set to rise following OPEC decision 05 December 2016

Hauliers are about to be hit by a rise in the price of fuel, as the welcome fuel duty freeze is superseded by the ramifications of OPEC’s decision last week to cut oil production.

As we go to press, Brent Crude has risen above $55 per barrel – a new 16-month high – meaning that fuel prices are set to rise ahead of Christmas.

“Any benefits gained by another duty freeze will be negated by a rise in the price of fuel,” comments RHA chief executive Richard Burnett.

“Road haulage operators have to pass any additional fuel costs on to the customer – they have no choice,” he continues.

“An increase in the price of fuel will have a damaging effect on the price of goods and, of course, the industry that plays such a key role in their delivery.”

RHA points out that, on average, every $2 dollar increase in the price of oil equates to an extra penny on the price paid by the haulier.

This in turn adds £414 a year to the operating cost of a single 44-tonne articulated vehicle at 73,000 miles per year and 8mpg. At 80,000 miles that figure rises to £454.

FairFuelUK claims that its sources suggest retailers’ pump prices will rise at least 3—4p per litre this week (commencing 5 December 2015).

The organisation quos one independent retail forecourts fuel supplier in the West of England as stating: “My wholesaler’s current diesel support price is 2p per litre above the most expensive in the area and 5p per litre above my nearest competitor.

“OPEC’s decision is not going to help anywhere apart from unscrupulous speculators and greedy retailers.

Rontec sites started ticking up already - I can see 3/4p per litre move on unleaded and 2/3p per litre on diesel.”

Brian Tinham

Related Companies
Road Haulage Association Ltd

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