Hauliers suffer as diesel costs spiral
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by Derren Hayes • The spiralling costs of fuel over the past few months has left many operators fearing for their futures.
Bulk fuel prices have risen by 5% over the past month to around 49p/lit (CM 3-9 October). Pump prices are up more than 3p/lit since August to an average price of 5936p/lit.
The rise is due to the increasing cost of crude oil, the introduction of new low-sulphur fuel, the end of the fuel price war and the onset of winter.
Fuel analysts expect further rises over the coming months, and new Transport Minister John Bowis has confirmed the Government's commitment to a 5% across-the-board rise in November's budget. "The price is higher now than it's ever been," says the Freight Transport Association's Simon Chapman.
Dartford-based container haulier Transport Services says operators can't afford to absorb the increases and will have to impose immediate price rises of around 3%. Director Les Sampson says: "They won't be doing what they're doing in a year. It's having a horrific effect on the bulk users."
Bryan Turnock of fuel bunkering company Key Fuels says the rise in pump prices will encourage hauliers get their fuel other ways: "People are finding it difficult to pass the increases on: the way forward, is through better fuel management and efficiency."