The news that Brent oil took a near $3 leap yesterday, taking it to $64 per barrel, flies in the face of speculators who predicted that $60 was the limit – and the average price moving into next year.
Commenting, RHA chief executive Richard Burnett said: “This latest rise means an increase of nearly 1 pence per litre - if the price reaches $70 a barrel it could mean an additional 5 pence per litre.”.
Fuel represents over 30% of a haulier’s operators costs. Today’s modern 44-tonne articulated vehicle will give around 8mpg and typically cover 73,000 miles a year. To do that, it will use 41,483 litres (9,125 gallons). At today’s price that works out at £39,824 ex vat.
Every penny increase adds an additional £414 a year to an operators fuel bill. Operators already try their best to pass on any additional price rise – they cannot afford not to. But if prices continue to rise and their current rate, they will not be able to afford to stay in business.
“This cannot be allowed to happen,” Richard Burnett continued. “The cost of oil is out of the UK’s hands. However, it underlines the necessity for the Chancellor to listen to the industry and reduce fuel duty by 3ppl in the forthcoming Budget.
“Should he decide to ignore his responsibility to the industry that moves 90% of the UKs economy then the future for UK registered road hauliers, and their customers, looks very bleak indeed.”