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The price of a gallon of petrol has accelerated through the £5 barrier for the first time this week, while the price of diesel continues to rise at an even faster rate.
And the continuing rise in pump prices has triggered warnings that the price of fuel could be close to £7 a gallon by the summer at £1.50 a litre.
With no end in sight to the fuel price rises, petrol and diesel is fast challenging vehicle depreciation as the single biggest expense faced by fleet operators. With fleet budgets traditionally always under pressure - and more and more businesses feeling the pinch as a result of the credit crunch - Fleet Support Group says fuel cards are a corporate essential.
Figures from the AA reveal that the average UK price for a litre of petrol is an unprecedented 110.4p (£5.02 a gallon) with a litre of diesel costing 120.7p (£5.49 a gallon). Twelve months ago those figures were respectively 95.9p (£4.36) and 96.8p (£4.40).
Nationally, unleaded petrol prices have risen more than 3p a litre in the past month with diesel prices up by around 7p a litre. Simultaneously the price differential between petrol and diesel has also widened to more than 10p a litre - last month the price differential was 7.5p per litre.
UK average petrol and diesel prices continue to hit record highs, propelled not only by soaring oil prices but the impact on supply of European refinery maintenance problems. And, with crude oil now accelerating past through the $120 a barrel mark, fleet operators should be prepared for pump prices to go even higher.
Brendan McLoughlin, managing director of UK fuel price comparison website PetrolPrices.com, said: “It’s up to the Government to put pressure on Opec to increase production so that prices fall. We predicted in February that petrol would hit £1.50 a litre this year, but if these conditions continue and the Government doesn’t work harder to stem the rising prices, then we’re likely to hit £1.50 a litre by September. That would be a disaster for the country.”
Fuels cards undoubtedly provide the best opportunity for fleet operators to control their fuel bills and also offer a significantly higher level of security than pay-and-reclaim systems.
Fuel card management reports provide fleet chiefs with useful running cost data that enables poor MPG performing vehicles/drivers to be identified. Lower than expected MPG figures maybe due to rogue vehicles, aggressive driving styles or even fuel being siphoned into a can to fill private vehicles. Action can be taken against all eventualities – but only if fleet managers have the information at their fingertips.
Most of the major fuel card providers – includes the organisations recommended by Fleet Support group – offer online fuel reporting thus avoiding the need for fleet managers to trawl through endless paper to find key data.
In addition, websites can be used to locate the cheapest fuel prices in your area - motorway service stations should be avoided as they are typically the most expensive outlets. The Department of Transport estimates that savings of up to 10% can be achieved on fuel bills if drivers know that the price at which they buy fuel is being monitored.
Eco-safe driving is the new catchphrase being promoted to motorists with the twin aims of improving road safety and saving the environment and, ultimately, saving money.
Put simply the aim is to encourage motorists to anticipate what is ahead of them on the road and drive as smoothly as possible, avoiding harsh and aggressive acceleration and braking.
.Saving energy, saves fuel, cuts vehicle emissions, saves money and improves safety. Actively monitoring and managing the fuel used by vehicles can typically cut consumption by 10%, with an equivalent cost saving. Use of safe and fuel-efficient driving techniques as part of best practice fleet management will make a major contribution to fuel saving.
Tests carried out by the Driving Standards Agency reveal that by adopting an eco-safe style of driving an experienced driver can cut fuel bills by 6%, a driver with just a few years experience can cut fuel bills by 9% and a newly qualified driver by 15%. For example, pulling away from standstill too fast uses up to 60% more fuel.
Fuel accounts for up to 30% of motoring costs so eco-driving makes commercial sense and it may also save your life. Here are the Energy Saving Trust’s top-tips for safer, greener, stress-free driving: