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ion Brooke-Langham, Keyfuels

28th September 2006
Page 22
Page 22, 28th September 2006 — ion Brooke-Langham, Keyfuels
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Which of the following most accurately describes the problem?

Crude oil prices have fallen with Brent Crude down to $60 from around $73 a month ago. This in turn has been reflected in pump prices, with the majority of them falling, particularly in the light of the fierce competition amongst supermarkets.

The UK pump price dropped 3.5%, although other EU countries saw far larger cuts Spain's average price fell 11% while Dutch hauliers saw the cost of diesel drop 8%. Once again the UK haulier is missing out.

Last month we said we would look at how a robust review of fuel management can be used to drive down the total cost of fuel.

• Cost of bulk fuel purchases • Cost of other fuel purchases • Labour costs of operating own yard tanks • Maintenance costs of all refuelling related equipment • Labour costs of administering fuel systems • Financing costs of fuel.

All too often companies are only directly aware of a fraction of these cost elements, with the real costs buried within non-transport departments, frequently as part of other jobs. A robust audit will investigate and report on the practices that sit behind the fuel sourcing function(s). Significant losses in cash or fuel terms can be curtailed by identifying areas where inadequate controls are in place.

Typical areas of focus for a fuel audit are likely to be: • Are bulk fuel deliveries checked for I itreage and temperature?

• Are own yard pumps maintained regularly?

• Are all fuel purchases recognised and allocated correctly?

• Are consumption figures recorded and monitored?

• Are anomalous figures investigated?

• Are both driver and vehicle figures checked regularly? If you do not know about a problem, it will never go away, it will only eat away at your hard won profits.

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Organisations: European Union

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