Rising haulage fuel prices – 2022 shock

Rising haulage fuel prices – As fuel prices rocket – We take a look at what this means for the haulage industry.

rising fuel prices at pumps
Fuel prices hit largest increases since records began

Over the past 14 days fuel prices have skyrocketed to their highest level since records began.

For haulage firms and domestic customers alike this cost hike is proving a serious challenge. 

With average diesel prices topping the 180p mark in some regions this is the largest price increase since records began in June 2003. 

Fuel makes up roughly 30 percent of operating costs so rising haulage fuel prices are, therefore, having a significant impact.

The suffering in Ukraine at the moment is heart breaking and the invasion by Russia has certainly caused the cost of oil to soar, resulting in the spike in diesel prices, with predictions if the government don’t step in it could reach £2 a litre in the next couple of weeks.

With firms like McCluskey Ltd buying fuel on a daily basis we are seeing daily increases in operating costs.

With a third of costs going on fuel and already tight operating margins within the sector, companies are being forced to pass these rising fuel prices onto their customers, who, in turn, are likely to pass the costs onto consumers.

Another concern is a fuel shortage.

Although none at present, if supply chains from Russia are cut can the gap be plugged by other major producers?

If not could this lead to demand outweighing supply?

The increase in fuel prices follows the difficulties of 2021, which saw the driver shortage crisis.

Many companies were forced to increase driver wages to attract and retain staff.

Although a move welcomed by many within the sector, it meant that firms were already seeing their operating costs increase. 

Overall, haulage businesses are facing a highly challenging market, which could get worse the longer the war on Ukraine lasts. 

McCluskey Ltd hope to see an intervention from the government on a reduction in fuel prices and an end to the awful war on Ukraine soon.