Rising fuel costs are a massive problem for customers and businesses. Find out what's causing these high prices and when they're forecast to fall.
Fuel prices in the UK have reached record heights as Russia’s invasion of Ukraine drives up the global cost of oil. According to Experian Catalist, the average diesel price has risen to *167.4p per litre this week, with petrol reaching*159.6p per litre. It’s the first time that average prices for both fuels have reached these levels, and in some parts of London, garage forecourts were even charging over £2 per litre.
News of moves to either boycott Russian energy or reduce reliance on it following the country’s invasion of Ukraine pushed oil prices to nearly 140 dollars a barrel last week.
However, the price had settled back to 120 dollars by the end of the week, and oil is now trading at less than 110dollars a barrel. So, despite conflicting reports on whether the OPEC group of oil-producing nations are prepared to increase production to cover shortfalls, the initial market panic seems to have settled for now. Due to this, some experts predict we should reach the peak and start to see prices going the other way to reflect the big drop in wholesale cost - subject to no further spikes - in the barrel price this week.
Ultimately, this rise in fuel costs will directly affect supplier transport and distribution costs. Many of our supply partners have massively invested in greener transport solutions. However, these additional costs will likely impact them due to their effect further down the supply chain.Therefore, even if they have a strategy to decrease their reliance on fossil fuels, these increases will still drive-up production costs and squeeze their already reduced margins.
One thing’s for sure: Fuel prices are just one of the many in-costs affecting supplier price moves. So,contact your Beacon Services Manager now to see if we can support you in mitigating these rises.