Fuel Price Increases in New Year Will Have Massive Impact
The recent announcement of Government plans to increase fuel duty by 3p per litre in January is not good news for anyone looking forward to the New Year. Eagle Couriers will certainly feel the change and unfortunately the change will not be for the better.
On New Year’s Day 2012 the government plans to bring drivers in the UK back down to earth with a bang by charging drivers on UK’s roads an extra £1.50 to fill the average vehicle. We in particular will be hit hard as our service is to deliver to clients all over the UK. Our budgets are spent mostly on travelling and we have estimated how much the rise in fuel will add to our bill and it’s not looking good.
There has been much debate regarding the price in fuel going up. Many MP’s have lobbied against the decision unfortunately with no prevail. The rise will be particularly felt by businesses like ours such as bus and lorry operators who are getting as little as seven miles to the gallon.
Our current fleet of 100 vehicles will mean that at a minimum at least £16,000 will be added to our yearly fuel bill. This is not the best of news at a time when the country is barely making it through a recession.
This extra amount of money that we will have to use to foot the bill of fuel costs could definitely be put to better use. The £16,000 could be used to improve our fleet of vehicles so in turn we could provide a better service to our clients. It could be spent on taking on an extra staff member this winter to help with the Christmas rush.
For any businesses and private road users this is surely going to be a trying time with greater pressure put on budgets and risks which will further depress confidence and spending. I think everyone who will be affected by the increase can agree the decision feels somewhat an ill advised, unwanted and punitive decision.
Sacrifice seems to the key word when considering how we move forward after this decision. We want to try to ensure that our customers are not affected with the rise however it is proving somewhat difficult with rises in tax, vat and cost of living all of the time.
The importance of transport for many businesses and individuals is extremely high. Many of us don’t regard our vehicles as luxuries but more like necessities which therefore makes it more difficult when considering such a jump in fuel prices. For many who travel long distances to work or spend their work driving it is not an option to not have a vehicle.
Taking into account the fuel costs this winter is just one of the many pressures that we and others will have to face this winter. With the weather expected to be just as bad as last year we have to be prepared for all eventualities.
The rise in fuel costs means we may find it a bit more difficult this winter. However here at Eagle Couriers we are going to work harder and show our customers that we a company built for a challenge and ensure that all deliveries will get where they are going.