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Widescale fuel price hikes facing fleets as Ukraine crisis deepens

By Kyle Lindsay
Thursday, March 6, 2014 - 12:30

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SETBACK: Will fuel prices now rise?

Russian military activity in Ukraine could mean fuel price hikes for fleet-operating businesses, the RAC have warned.

Fuel traders are already beginning to purchase stocks to guard against the situation worsening; a scenario which would automatically cause prices to increase due to a tightening in supply.

To make matters worse, the RAC claim the price of oil will almost certainly be negatively affected, further increasing forecourt prices.

The news comes at a bad time for British motorists, who have enjoyed more than a month of the lowest average pump prices for three years.

Matt Dallaway, Business Services Spokesman for the RAC, said: “Businesses were certainly starting to feel the benefits of the ongoing savings – at 129p a litre the price was 11p cheaper than it was in early March last year.

“However, as the fuel market is intrinsically linked to major international political events, the current tensions in Ukraine could impact productivity and the wider economy as well as impacting the bottom line for SMEs and larger businesses alike.

“We need the pound to continue performing well against the dollar as this could help to offset some of the inevitable price rises.”

“We need the pound to continue performing well against the dollar as this could help to offset some of the inevitable price rises.”

Matt Dallaway, RAC

Fuel prices remain a hot topic among UK drivers, with 46% of motorists surveyed in last year’s RAC Report on Motoring claiming the cost of driving is their number one concern.

The report also revealed that 78% of drivers see their car as an integral part of their lives, saying they would find it difficult to adjust life without a vehicle.

More than half (54%) said they would have a fuller social life, visiting family and friends more often, if fuel was more affordable.

Image courtesy of Highways Agency, with thanks.

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