Short-term loss on fuel
Page 8
If you've noticed an error in this article please click here to report it so we can fix it.
by Derren Hayes • The fuel pump price war is unlikely to benefit thousands of road hauliers paying over the odds for bulk diesel, say industry analysts.
But at the pumps Esso is promising to match the lowest fuel prices within a three-mile radius to each of its 2,100 outlets.
Shell is cutting a penny off a litre of diesel on the forecourt, and Gulf and BP also say they are to slash prices further.
But the Freight Transport Association is concerned that pump price cuts may be subsidised by artificially high bulk prices.
Esso disagrees: "In the long run diesel bunkering will be as competitive as pump prices, but in the short term pump prices may be cheaper." Esso says the cuts are part of a long-term policy that will revolutionise fuel sales.
Shell is less enthusiastic, saying it will pile further pressure on the industry. A spokesman says: "Over the past few years smaller stations in rural areas have been forced to close—this will only hasten that trend."
International haulier Curries of Dumfries gets its fuel from pumps but says any savings will be offset by duty rises.
"Fuel rises in the budget will cost us an extra £200,000 a year in diesel and these recent cuts are only a small step in the right direction," says fleet manager George Henderson.