Fleets could be facing record diesel prices after the steepest and fastest ever rise in wholesale costs over the festive period, according to RMI Petrol.
From Monday December 19 to Thursday January 5 the cost of diesel increased by nearly 4.50ppl and unleaded petrol by as much as 5ppl with 20% VAT to be added.
RMI Petrol fear that average UK prices for diesel, currently close to 141ppl, will soon push past the May 9 peak of 143ppl and hit new record levels – perhaps even breaching 145ppl in the next few weeks.
These increases have been so rapid that fuel retailers have had scant time to react over the holidays and few have made any significant increase yet to their pump prices, says RMI Petrol.
However, from this weekend prices will have to move upwards quickly in order to protect the already wafer thin margins which have caused the independent retailers such financial stress through 2011.
This increase in price is due to several market factors including Repsol, spain’s largest oil company halting production, Petroplus Holdings having to shut down 3 out of 5 plants due to banks freezing 1$billion of the company’s loans; cutting crude oil supplies, and growing tension between Iran and the western world, leading Iran to threaten the blockade of the Straits of Hormuz, through which 30-40% of the world’s oil supply is shipped.
Brian Madderson, chairman of RMI Petrol, said: “This is a very worrying development but not entirely unexpected.
“I wrote to the Chancellor on 2 January highlighting the serious supply issues ahead and enclosing a report ‘the case for reform of fuel taxation’ as it is the Government’s only direct control over rocketing fuel prices which are undermining society and our economic recovery.”
The EcoStralis, by Iveco, combats the rising cost of fuel and ensures maximum productivity whilst minimising operating costs. The EcoStralis, billed as the cleanest and greenest diesel powered heavy truck on the market, offers at least a 4% improvement in fuel economy on long distance operations, reducing the impact on the environment as well as making it a cost effective vehicle. More details about the Iveco EcoStralis can be found here, or you can get in touch with our Manchester and Brighouse dealerships using the details below.
Manchester: 0161 777 4666
Brighouse: 01484 380 111