Fuel rise hits the hold button

Fuel rise hits the hold button

Posted by

Martin Brown

June 2012

One social media wag suggested that it was just as well the fuel duty hike was delayed – it would save on ministerial fuel necessary for all the recent government U-turns…

Was the Chancellor going to do anything else? I doubt it.

In a tricky place, somewhere between a rock and a hard place, the Government strapped on its body armour, crashed into the hard place, and abandoned its 3p fuel duty hike that was due to take place this August.

We shouldn’t get too euphoric about the news: the rise has been delayed only, to January 2013.

Huzzah!

Indeed. There was a collective sigh of relief from the Fleet Alliance office staff when the announcement came through yesterday.

Who wouldn’t be happy? After all, whether you were a business owner considering the rise in your fleet fuel bill or a private driver wondering how to make the necessary savings to take in the price increase, the news was truly welcome.

Because it’s not just 3p is it? Once VAT is added, the rise is actually 4p a litre. Ouch!

However, we shouldn’t get too euphoric about the news: the rise has been delayed only, to January 2013. (I’m sorry if that sounds bah! Humbug…)

But the delay does mean more time to plan for the increase.

So how do you get your fleet into shape? Here are a few of my tips:

  • Concentrate on whole life costs – these take into account fuel usage and give you accurate comparisons between cars
  • Low CO2 emission cars are the way to go – both for drivers (benefit in kind) and for fleets (saves on fuel and National Insurance costs)
  • Fuel cards – control and analyse your spend and reduce administration
  • Reconsider free fuel – is this a perk or costing the driver and company more money than the actual cost of fuel? In our experience, it’s usually the former

Although the Government is simply delaying the inevitable, it’s still something to be welcomed – for both businesses and individual drivers. But businesses should make hay while the sun shines – as a well-optimsed fleet is better prepared for subsequent price hikes.

I’ve gone all bah! Humbug again, haven’t I?


You also might like…

If you liked this article then check out our posts about similar topics

Unlocking the full potential of your vehicle fleet

Managing a fleet of up to 1,000 vehicles can feel like a juggling act—from securing the most competitive lease rates a...

The dos and don’ts of using AdBlue

What is Adblue And why do you need it for your diesel car If you’ve not come across it before, it’s an additive tha...

I am an employee, will I be tied to the business if I take a car on salary sacrifice?

When you take a car on salary sacrifice from your employer, you are agreeing to pay the car’s monthly rentals for the ...

Britain is the biggest market for EVs

Who would have thought that Britain would be the largest market for electric cars in Europe Given the daily misgiving...

Fleet Manager’s guide to salary sacrifice car schemes

It’s a complex job managing a company car fleet There’s balancing budgets against cost increases Then there’s meet...

Five reasons to get an EV this winter

1 Never have to scrape an iced up windscreen again If there’s one thing to make you feel really smug, it’s the know...

Finance Director’s guide to EV Salary Sacrifice

The FD says no! How often do you hear that The person responsible for the cashflow of the business, the protector of the...

HR Director’s guide to EV Salary Sacrifice

Keeping staff happy and resolving disputes is part of the job description, right But here’s one way to deliver an inst...

Ready to make the management of your fleet more efficient?

Request a call back


Or Call Us On: 0345 601 8407
Schedule a call back