Diesel prices face significant rise
Fleets are being warned that a “potentially significant” rise in diesel prices is on the horizon due to the new international rules on ultra-low-sulphur.
The warning comes from mileage and expense management specialist TMC, which said that the global mandate on using ultra-low-sulphur fuel in merchant shipping will hit refining capacity, causing diesel prices to rise.
Although the new fuel standard comes into effect on 1 January 2020, TMC said road users are expected to feel the knock-on effects on fuel prices sooner than that while oil industry analysts also expect oil prices as a whole to rise throughout next year as less complex refineries scramble to secure additional supplies of low-sulphur light sweet crude oil for their existing processes.
The warning comes at a time when UK diesel pump prices are already at their highest level in four years.
Paul Hollick, managing director, TMC, said: “Given the scale of the factors driving fuel prices, it is understandable that fleet operators may feel somewhat helpless when they hear of another, potentially significant, cost increase on the horizon. But fleets can do much to mitigate the impact by aiming to achieve a clear understanding of their own cost drivers, and then applying appropriate tools and policies in their management of fuel, drivers and vehicles.”