Over the past few years, fleet managers have faced a growing number of widespread, national challenges that have affected the operation of fleets in a variety of ways. The most alarming in the first quarter of 2022 has been the exponential rise in the price of fuel. In March 2022, that national average prices for petrol and diesel in the UK have shot to levels not seen since 2008. These prices currently stand at 163.71ppl and 173.68ppl respectively.
There are many causes that have attributed to the sharp rise in petrol and diesel prices. These factors affect the wholesale price of oil barrels which, in early 2021, sat at about US$60 a barrel. This increase in the wholesale price of oil drives up the product cost of fuel for both retailers and consumers.
The wholesale value per barrel of oil reached a high of over US$136 with further increases looking likely. But what has caused the wholesale price to double over the past 12 months? Why have petrol and diesel prices increased dramatically? When will the fuel prices stop rising? And what can fleet managers do to protect their fleets?
