Fuel Monitor
Fuel Surcharges Explained
Fuel is the single greatest influence on the cost of transport in the UK today.
With global events playing a significant part on supply, and the consequent cost, W H Barley constantly monitor the marketplace to ensure any surcharges in place are in keeping with its own cost-base.
| Update Date | Last Purchase (Pence Per Litre) |
26/07/2010 |
96.25 |
The oil market rose considerably throughout 2008, with an incredible average of 5-6 pence per litre increase each week - our peak purchase price was 108.00 pence per litre. Everybody in the industry is subject to these rises and they cannot be avoided.
The rise can be explained in terms of the following three factors:
- Economic Concerns - Crude oil and it derivatives, such as diesel and unleaded petrol, are traded in U.S. Dollars. The U.S. economy is currently very weak, and this has meant that the value of the dollar has fallen proportionately. When this happens, there is a rush from foreign investors to buy commodities in the U.S. dollar. This greatly increases demand, and forces up prices.
- Supply and Demand Fears - OPEC (the Organisation of Petroleum Exporting Countries) controls about almost 50% of the global oil supply, and is refusing to increase production in order to stabilise prices, despite direct requests from the UK and US governments to do so. Furthermore, global demand is at an all time high due to emerging giants India and China.
- Current Affairs and Conflict - Worldwide affairs have a genuine impact on your fuel prices. Concerns about the U.S. housing market as well as long term uncertainty over relations between Russia & Georgia have also caused prices to rise.
We will never endeavour to profit from fuel surcharges but, must - from time to time - impose them to safeguard the future of our business and those of our loyal customers.
However, as we approach the second quarter of 2009 prices have stabilised to a certain extent as have our fuel surcharges. We genuinely don't know what the future holds but, we do promise to maintain the same transparency as we have to date.
