Dery prices soar: supplies uncertain
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THE PRICE of diesel at many garages rose by yet another 4p or 5p last week following BP's announcement that it was charging garages a further 3.4p a gallon.
Other oil companies were confidently expected to follow suit very quickly. This means that garages themselves are now paying approximately 88p a gallon for diesel (including 35p duty and 8 per cent VAT).
When the garage adds on its cost and profit margin, which can vary from garage to garage — particularly the profit margin — the pump price is now commonly between 101p and 106p per gallon.
A spokesman for Mobil told CM that an oil company cannot dictate the pump price charged by garages. The garages have complete freedom in fixing their prices and any interference from the oil company is illegal.
Hauliers who have their own diesel storage tanks are now paying (or shortly will be, depending on their supplier) slightly less than the garages are charged, about 871/2p a gallon. Thus, the price difference between an operator's own supply and the roadside garage pump price can easily be 15p or more a gallon.
When this price difference is multiplied by a full tank's capacity of 44 gallons such as is found on a 32-ton unit, the need to avoid roadside refuelling if possible becomes even more apparent.
Added to this is the still uncertain supply position, which is most biting at garages and service stations. Agency cards are still being refused at some places.
A spokesman for BP said that its diesel and petrol supplies were remaining at the level of the past few months and, while there-was no sign of improvement, it did not seem to be getting worse. Most of the publicity about shortages and rationing was aimed at petrol consumption which, said the spokesman, is likely to increase as holiday motoring begins.
Two ways for hauliers to cut their diesel bill by reducing their reliance on garage refuelling are to establish bunkering points on regular runs (usually costs about 11/2p per gallon drawn) or to fit long-range fuel tanks. These cost between £100 and £200, according to size. Fitting these not only enables a haulier to use his own fuel for longer, so saving money, but also guarantees sufficient diesel on a long run through an area where diesel may be scarce.