Another Courier Disaster

The average price of diesel went up by almost 5p between May and June, which Boxby Couriers warns is another disaster for the transport industry.

The average cost of diesel currently stands at 104.66p per litre, compared to 97.68p per litre in May.  Companies are already feeling the strain of fuel rises at a time when budgets around the country are already at full stretch. The Government’s imminent increase in fuel duty will further negatively affect businesses, and that means all increases will need to be passed on to the customers. 

“The latest fuel cost rises mean that refilling a typical 70-litre fuel tank will now cost an extra £3.50″ said Alistair Patterson Director of Boxby.  “This will come as a massive blow to van drivers and couriers as they look to limit their outgoings during the economic downturn.”  Van drivers and couriers, as well as many other small businesses, will no doubt be looking to the Government to provide them with additional support as they try and cope with this latest set of fuel rises.

There are a number of steps van users and couriers can take to remain frugal during the economic downturn. For instance, more drivers are investing in Satellite Navigation technology to ensure that they get to unfamiliar target destinations much quicker and save fuel in the process, and using companies like Boxby to help keep their vans full with extra deliveries.

Death Threat To Courier Companys

Fuel Prices are set to peak around 120p per litre by the end of this year, this will spell death to a lot of small independent courier companies.  At the  price of  103.6p per litre now its hard enough to make a living, but if fuel rises to 120p per litre it will just kill off lots of courier’s businesses.

The latest increases in fuel have come from the escalating cost of crude oil.  Its expected that the cost of a barrel of oil will more than double to around $145 – $147 by the end of the year.  And with the 2p per litre increase in fuel tax in September and the vat returning to 17.5% by the end of the year, its not good news.

I think its time that the transport industry to get together and put pressure on the government to subsidize the fuel the same way that they do for farmers who use red diesel.  Why not let the transport companies use red diesel at a reduced cost in commercial vehicles only.  This would keep them in business and help lift the UK economy out of recession.