UK Fuel Prices Expected to Rise by 4p
With the wholesale price of fuel raising by 5p since Christmas many experts believe that it is only a matter of time until the price is reflected at the pumps. Fuel retailers have been soaking up this increase since the turn of the year by sacrificing already tight profit margins because they understand how price sensitive motorists have become.
If such predictions are correct motorists and businesses alike will be forced to pay at least an extra 4p per litre in the forthcoming days. This bad news counteracts the positive news announced by Chancellor George Osborne in December 2012 which stated the government had agreed to scrap a planned January 2013 3p rise in fuel duty.
Although a 4p per litre increase seems quite insignificant, if you consider the price when filling up an average sized car such as a Vauxhall Astra this accumulates to a £2 rise with each visit to the pump.
Businesses that rely heavily on transport and logistics will be most affected by such rises which could easily see their annual costs increase by thousands of pounds. The increasing prices are sure to scare many business owners around the UK who are already struggling with the inflated fuel costs. Such will only increase urgency among businesses in the coming months as business owners and transport managers look internally for potential savings.
With profit margins being squeezed cost cutting technique are now a priority for businesses that are serious about profit maximisation and control on escalating costs. Fuel cards should be a consideration for any business with a fleet and high fuel consumption as they can offer an easy way for drivers to pay for fuel whilst providing an online management system to forecast weekly, monthly and annual spend.
Only time will tell whether or not the consistent rises in fuel prices will have detrimental effect on businesses and hinder economic growth, however it is certain that such costs cannot be avoided as the use of transportation is a necessity for the logistics of supply chains throughout the UK.
