Bulk fuel cuts expected
Page 8
If you've noticed an error in this article please click here to report it so we can fix it.
by Karen Miles • The prospect of reductions in bulk fuel bills emerged this week as operators benefit from major oil companies slashing diesel pump prices.
Experts say operators should also get ready to push for lower prices on bulk purchases. According to Horsham-based John Hall Associates, negotiations should be settled around a penny a litre lower than March prices.
Early April's bulk price of 42p/lit (inc-VAT) should reflect the loss of the winter surcharge, falling world crude prices and a reduction in demand for was oil. Mobil has already cut an average of just under lp/lit from its bulk prices because of an improving exchange rate.
The advice to press for better deals comes as fuel bills at the pump fell to pre-Budget prices— knocking around 1% off average operating costs.
Last week Mobil and Esso cut their price at the pumps by 2.6p/lit in response to a 2.2p/lit cut by Shell. BP did not move on prices. The three oil companies cited the strengthening of the pound and the "competitive element" as the reasons for the move. Their maximum retail price is now 50.9p/lit.
In the transport industry up to 80% of diesel is bought in bulk and the prospect of lower prices must come as welcome relief after the Budget when Chancellor Norman Lamont hit road hauliers with a 228p/lit increase on pump and bulk prices.
That added up to £500 a year to the running costs of an average 17tormer and up to £1,000 a year for an average 38-tonner. 71 OPEC ministers are considering whether to introduce "sanc
tions" against western conservation taxes. They fear the tax reforms are part of a wider western move toward carbon taxes now being considered by the EC. OPEC is suggesting a "surcharge" on oil exports.