Diesel and petrol prices see record rise in May

Diesel and petrol prices see record rise in May

Posted by

Kevin Blackmore

June 2018

Prices at UK fuel pumps continue to rise and suffered a record 6p a litre rise in May, the highest increase for 18 years and following hard on the heels of the largest increase in 16 months in April.

Both unleaded petrol and diesel rose by around 6p per litre in May, according to the RAC’s Fuel Watch service.

Diesel increased by 6.12p – from 126.27p to 132.39p – the highest rise since the start of 2000. As a result the cost of a tank of diesel for a family car has become £3.37 more expensive at £72.81.

Unleaded meanwhile, increased from 123.43p to 129.41p, taking the cost of filling up a 55-litre family car to £71.18 – an increase of £3.29 in just one month.

The RAC Fuel Watch data also showed that the average prices of both petrol and diesel had gone up every day since 22 April, adding 8p a litre in the process – the longest sustained price increase since March 2015.

Forecasters say a surge in the price of oil on global markets, political tensions in the Middle East and the exchange rate between the dollar and the pound are behind the latest rise at UK pumps.

The rise in the cost of fuel has been across the board and has not been restricted to the major branded outlets.

In May, the major supermarkets raised petrol by 5.49p a litre and diesel by 5.88p,  while motorway service stations added 6.37p to unleaded, taking it to 144.75p a litre, and 6.69p to diesel to 147.80p a litre – 15p a litre above average UK prices for both fuels.

 

What can fleets do?

To try and combat rising fuel prices at the pumps, fleet managers have a number of options they can consider.

One sure way is to introduce a corporate fuel card which provides an accurate measure of a company’s fuel expenditure, as well as allowing the introduction of a number of management controls and more detailed reporting.

The Fleet Alliance Fuel Card, provided in conjunction with leading network supplier, Allstar, is accepted at over 7,700 major filling stations across the UK, and can play a key role in quantifying and controlling fuel costs.

There are a number of other major benefits, too. For example, due to its wide national coverage, the Fleet Alliance Fuel Card reduces the number of time drivers spend trying to find a particular branded fuel outlet, thus saving both time and fuel.

Drivers also have access to and can be directed to the cheapest fuel sites, typically supermarkets, but sometimes branded stations, through the card.

A Fleet Alliance Fuel Card also allows key information to be fed back to the fleet manager via management reports which measure fuel spend by several parameters, including driver details, price, location and current mileage, and which can be integrated within existing fleet management systems.

This allows managers to identify areas where savings can be made, for example by avoiding motorway service stations,  using cheaper filling stations, or by highlighting the use of expensive products, such as super unleaded, by individual drivers or groups of drivers.

For fleet managers, consolidated invoicing eases the administrative burden associated with accounting for VAT. The fuel card invoices are accepted by HMRC as VAT documents, removing the need for drivers to keep fuel receipts and the accounts department to process them.

The use of the fuel card also limits purchases that are expressly not allowed. The driver cannot buy goods with the card other than those products specified on the card, typically fuel and oil, thus eliminating the risk of fraud.

To find out how Fleet Alliance Fuel can help you manage your fuel costs more effectively, please visit our website at https://www.fleetalliance.co.uk/fleet-360/fuel-management/


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