Fuel Prices

With each increase, fuel management and driver training becomes even more important for those in the transport and logistics [Transport and Logistics] industry, as well as bus and coach operators, as they attempt to offset the squeeze on profit margins.

Campaigners press for lower costs

According to the AA, diesel fuel prices in the UK are the second highest in Europe, while petrol is the seventh highest. Costs can continue to increase despite falling oil prices due to commodities market speculation and refiners seeking to protect their profits, but it is the government's cut of the pump price that generally prompts ill feeling.

While a 3p per litre increase planned for January 2012 was scrapped by the government, campaigners - such as the FairFuelUK group - continue to argue the level of duty has a negative impact on the economy, calling for a reduction.

Figures from the Freight Transport Association have suggested a 3p rise would cost the transport and logistics [Transport and Logistics] industry £325 million, with the organisation noting duty represents more than half of bulk diesel prices - excluding VAT.

The political

Fuel prices and politics have been intertwined in the UK at least since 1993, when the Conservative government introduced the fuel price escalator - designed to combat pollution by discouraging people from using their cars. However, it contributed to the most expensive fuel in Europe as taxes accounted for 75 per cent of the pump price and was scrapped after the fuel protests of 2000.

In 2011, a 'fair fuel stabiliser' was introduced, with the aim of keeping prices fair as the tax levied will be capped at the level of inflation. Nonetheless, the prospect of higher bulk fuel prices remains a major concern for fleet operators.

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