With fuel prices being particularly topical at present, we asked 2MV’s Managing Director Jim Tyler for his take.
“Fuel prices have been fairly constant for a long time but with six of the ten countries having the largest oil reserves being located in the middle east supply disruption is always a risk.
We face two challenges: 1. Supply 2. Price.
The current conflict could cause problems with both of these.
We don’t have enough space to keep a large supply om site so we have to rely on fuel stations. Most of our fuel is drawn at HGV pumps.
In April 2024 published “Guidance Summary of response tools in the National Emergency Plan for Fuel”. One of the measures in the guidance is “Commercial Distribution Scheme: Oil companies and fuel distributors can be directed to prioritise the supply of road diesel to the commercial vehicles sector to support the operation of key supply chains, such as food and health.”
An increase in price is what we are seeing at the moment. Most responsible hauliers agree a fuel escalator agreed with their clients. We do and it is linked to a government website that reports weekly fuel prices. Our price increases or decreases in line with this. This week we are at 9% an increase of 3% having remained at 6% for several years. It has not kept pace with the HGV pump prices as it follows public pump prices which rise slower than our “bunker” HGV pump rates. This means we lose at the beginning of a price surge but benefit later.
Having a fuel escalator agreed with customers gives them confidence that the amount charged is supported by government produced statistics.
Everything we use or consume in our daily lives is moved or delivered by a truck. Think toothpaste, shoes. Coffee and lunch. Any increase in the price of fuel eventually is paid by the consumer. Price increases lead to inflation it is, therefore, very important to keep fuel surcharges to a minimum. We must ensure companies do not profiteer from this terrible situation.”
