AT THE HEART OF THE ROAD TRANSPORT INDUSTRY.

Call our Sales Team on 0208 912 2120

Diesel prices just keep on climbin

9th January 2003
Page 6
Page 6, 9th January 2003 — Diesel prices just keep on climbin
Close
Noticed an error?
If you've noticed an error in this article please click here to report it so we can fix it.

Which of the following most accurately describes the problem?

ui by Miles Brignall

Hauliers clinging to the hope that threats of war will pass and the price of diesel will fall have been doubly hit by military movements and problems in Latin America, both forcing prices up.

Despite the fact that war with Iraq is no longer a certainty, the price of diesel is continuing to climb closer to BOp per litre at forecourts across the UK. This is mainly attributed to the general strike in Venezuela, which has drastically reduced production there.

OPEC has said It will increase production to cover the shortfall and, last Sunday, the world's leading oil exporters —Saudi Arabia and Russia—also agreed further measures to reduce oil prices. However, such measures will take time. "An increase could be anywhere between 500,000 to one million barrels per day...It will depend on consultations," said OPEC president and Qatari 011 Minister Abdullah al-Attiyah last weekend.

Figures earlier this week showed Brent crude unchanged at $50.77 a barrel, just below a two-year high of $31.05 on 11September 2001.

Although OPEC's actions should bring prices down, it will take several weeks before a corresponding fall in pump prices is seen—and prices may rise again if military action is started. Maurice Fitzpatrick, head of economics at the business services provider Tenon, estimates that fuel prices could go up to 90p/lit if war with Iraq goes ahead. The FTA advises that, given the present volatile nature of the all market, it would be wise for operators to maintain fuel stocks at higher-than-normal levels, However, ETA spokesman Geoff Dossetter adds "We are encouraged by the attitude of OPEC and the suggestion that Its members will increase productivity if prices rise too steeply.

"Despite suggestions to the contrary, the ETA can find no evidence of oil corn

pony profiteering—price movements on the Rotterdam spot market are echoed in bulk deliveries to Industry and pump prices. Talk of protest demonstrations is unwelcome and, on present evidence, totally unjustified."

RHA chief executive Roger King says he has not heard of any planned protests. But he warns: "It would be a brave Chancellor who exacerbated the situation by increasing fuel duty."


comments powered by Disqus