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Fuel Duty Remains Frozen in 2017 Despite High Fuel Prices by Laura Jeeves

Fuel Duty Remains Frozen in 2017 Despite High Fuel Prices by
Article Posted: 01/28/2017
Article Views: 193
Articles Written: 3716
Word Count: 568
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Fuel Duty Remains Frozen in 2017 Despite High Fuel Prices

As you may know, fuel prices are on the rise. With increasing environmental concerns, haulage companies like yourselves should consider updating your fleets to include environmentally-friendly vehicles. They have better mileage and fewer emissions!

Fuel Prices Hit 18-Month High

The 2016 curse continued in December as petrol and diesel prices reached their highest average level since July 2015. It was reported that costs had risen by around 3p a litre. According to RAC Fuel Watch’s data, unleaded cost 117.23p a litre by the end of December, up from 114.24p at the beginning of the month. Diesel also increased from 116.65p a litre to 119.63p.

Why the sudden rise in costs? It is the unfortunate result of the oil production cuts agreed upon by the Organisation of the Petrolium Exporting Countries (OPEC) back in November. Over the course of 2016, the price of a barrel of oil has more than doubled – increasing from $26 a barrel in January to $54.86 by December.

These prices have not yet stabilised. A word of advice: if the barrel price continues to increase as the pound’s value against the dollar decreased, you should use more fuel-efficient vehicles to keep transport operational costs low.

Save Money: Invest in Environmentally-Friendly Fleets

There are a number of changes you can make to your fleet to ensure that it is more environmentally friendly. Why should you invest in a new fleet, you may ask? Remember that money you spend now is money you’ll gain later. An environmentally-friendly fleet is more cost-effective, as you will cover more miles and spend less on fuels. You can increase your profit while helping the environment by investing in a new eco-friendly fleet.

Look for:

• low CO2 vehicles, • dual-fuelled vehicles, • hybrid technology vehicles, and • Aerodynamic designs.

Prioritising trucks that release 100g/km or less of carbon will decrease your carbon footprint. You can also help cut emissions by using dual-fuelled trucks which run on a mixture of diesel and gas and release 25% less carbon that traditional vehicles.

Another possibility is to use hybrid systems which combine the traditional petrol or diesel engine with an electric motor. A hybrid fleet would perform to the standards required, while also being environmentally aware and fuel efficient. Trucks with a more aerodynamic design would also have a much better fuel mileage.

With fleets that use less fuel and more renewable energies, haulage companies can decrease the overall price of their operations.

Fuel Duty Frozen in 2017

I know what you are thinking: the price of fuel is rising and it is time to panic. But do not worry, despite the increasing cost of petrol and diesel, there remains a silver lining for haulage companies. Chancellor Philip Hammond has announced that the fuel duty will remain frozen in 2017. For the seventh successive year, no extra costs will be incurred on duty tax. Drivers will save £130 a year and the average van driver £350 a year – so the situation could be worse!

Norman Dulwich is a Correspondent for Haulage Exchange, the leading online trade network for the road transport industry. Connecting professionals across the UK and Europe through their website, Haulage Exchange provides services for matching haulage companies with jobs in road transport and haulage work. Over 4,000 transport exchange businesses are networked together through their website, trading jobs and capacity in a safe 'wholesale' environment.

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