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Fuel price speculators keep haulage in a spin

18th August 2011
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Page 5, 18th August 2011 — Fuel price speculators keep haulage in a spin
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Which of the following most accurately describes the problem?

By Laura Hailstone and Chris Druce DESPITE WORLD oil prices falling 12% since late July, the pump price of diesel (and petrol) has not fallen in parallel.

The Road Haulage Association (RHA) sparked a media storm last weekend as it issued an ultimatum to petrol forecourts, saying it expects to see the pump price of diesel drop by 5ppl within the next week or it would be asking why. Geoff Dunning, RHA chief executive, says: “We closely monitor the relationship between the barrel price of oil and the corresponding pump price of diesel. While oil prices have fallen since the end of July, it appears that forecourt prices have hardly changed at all.

“This situation is hurting UK hauliers and their customers. If you compare oil prices, fuel prices and exchange rates from October until now, there seems to be a big discrepancy over what we’re paying at the pump.” Nick Deal, RHA manager of logistics development, adds: “When the price of oil goes up, the forecourts are quick to act; so it should follow suit that when it goes down, they lower the price at the pump.”

In his column in the Sunday Mir

ror, Quentin Willson, the face of the FairFuelUK campaign, continued his call for people to sign up to the e-petition calling for future fuel duty rises to be scrapped (to sign the petition go to http://bit.ly/ FFUK-Gov).

Willson used the paper to say future duty rises would be “economic suicide” and the country needs to be protected from “wretched oil speculators” who are betting on price rises in September. The campaign also made the same call on BBC News 24 over the weekend.

Meanwhile, operators are continuing to ight for margins given the volatile price of fuel. Jon White, commercial director at RT Keed

well in Somerset, says that while the irm (which spot buys from various depots sometimes a month in advance), has seen fuel prices levelling out in recent weeks, there is a feeling they are on the rise again. “However, I think there are a lot of factors other than simply the price of crude at play – it’s a competitive market after all, so I don’t view it as simply proiteering,” he adds.

“Although we operate a fuel surcharge, you can’t keep passing that on to customers, so our main focus has been on mechanical issues, eficient planning and driver behaviour – factors we can control.” Stephen Dunn, director, of Ainsworth & Martin in Preston, says: “We’ve seen fuel prices drop a bit, but I’m talking a penny or two, while in percentage terms the fall in the price of crude has been far greater.

“Producers are quick to put the price up and slow to bring it down, which is something the government needs to look at.

“What we’ve done to mitigate the impact of fuel is introduce a bonus scheme for drivers, which means that if they improve their mpg they receive a bonus every quarter. It’s had good results so far.”


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