Petrol prices: RAC spokesperson reacts to criticism from The AA
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More than a quarter of UK businesses reported having to pass on price increases to their customers. The price of diesel has increased by 41 percent over the last 12 months, with average prices showing a litre now costs drivers 193.90p per litre.
With the staggering increase in diesel prices in the past year, this equates to an extra £3.5billion spent this year.
With diesel and petrol prices “likely to rise” many businesses are warning that they will have no option but to pass the costs onto the customers.
High diesel costs can be a further warning sign for the economy as the fuel is typically used in vans owned by businesses, driving up outlays.
Around 41 percent of businesses cited the increase in energy bills as the main reason for considering raising prices.
Ryan Fulthorpe, van insurance expert at GoCompare, commented on the findings, saying drivers need extra protection from the record fuel prices.
He said: “Gig economy drivers are some of those being hit hardest by fuel price increases.
“Across the country, drivers have picketed to ask their employers for fuel compensation.
“As our previous research has suggested, van drivers are a sector of the economy that are already at risk of leaving their jobs.
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“Delivery companies may have to rethink their customer pricing to keep their employees on board.
“For van drivers trying to make their fuel go further, our fuel calculator has been designed to help find the cheapest fuel nearby.
“In times when prices are rising, it’s always worth trying to save money where you can.”
Almost four in 10 businesses said they were absorbing the hit of the fuel prices themselves, but only in the short term.
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Surging diesel costs may mean customers will spend more for home delivery on goods purchased online.
Based on the price for diesel in May 2022, filling up a Ford Transit 80l van, the UK’s most popular model, would cost £142.71.
This is a massive increase of £41.49 compared to the same time last year.
Nearly one in four van drivers have turned down job opportunities because petrol and diesel prices mean certain jobs are not cost effective.
New data shows van users are now paying on average £2,427 more annually to fuel their vehicles to carry out paid jobs.
More than half of all businesses that are reliant on vans said they have increased their prices in recent weeks.
Around 14 percent of businesses have started building mileage charges into the prices consumers pay, which could become more common.
One in 10 have already had to scale back their businesses because of supply chain issues with vehicles, according to MoneySuperMarket.
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