Will summer fuel prices skyrocket in the UK?

Research from diesel fuel supplier, Speedy Fuels, shows that following 10 weeks of week-on-week price rises, taking the countries which track prices, the UK is the ninth most expensive country when it comes to buying diesel.  

  • The UK is ranked 8th, along with Italy, as the most expensive in the world for diesel
  • The UK is 2nd most expensive in the EU
  • The cheapest diesel is 418% cheaper than the most expensive
  • Prices are set to rise further this summer following stronger Iran sanctions
  • Brexit uncertainty could potentially increase diesel and fuel prices further

Using data from GlobalPetrolPrices.com, Speedy Fuels was able to compare the price of diesel globally and discovered a stark contrast in the price of the fuel across the planet.

Top 10 cheapest countries to buy diesel

Rank Country Price (£/litre)
1 Venezuela 0.00
2 Iran 0.06
3 Sudan 0.07
4 Saudi Arabia 0.10
5 Algeria 0.15
6 Ecuador 0.22
7 Egypt 0.24
8 Azerbaijan 0.28
9 Kuwait 0.30
10 Turkmenistan 0.30

 

Top 10 most expensive countries to buy diesel

Rank Country Price
1 Zimbabwe 2.51
2 Monaco 1.50
3 Norway 1.44
4 Hong Kong 1.43
5 Iceland 1.42
6 Sweden 1.40
7 Switzerland 1.34
8 Italy 1.33
9 UK 1.33
10 Belgium 1.31

Advising customers, Danny Woods, transport manager at Speedy Fuels looked at what impacts the cost of diesel in the UK and around the world.

Tax

“One of the main price factors is taxation and any government subsidisation of the price of fuels; which leads to the price of the fuel swinging from being as expensive as £2.50 per litre in Zimbabwe to costing nothing in Venezuela. In the UK, more than 60p in every pound of fuel goes to the Treasury.

“As a diesel supplier we’re always advising our customers that, due to a variety of reasons, the price of diesel continually fluctuates, meaning they should never put off buying diesel until the last minute – such as in winter when prices are usually highest.

Geopolitics

“The majority of the world’s crude oil comes from notoriously volatile countries. Recent tightening of sanctions on Iran by the Trump administration is expected to reduce Iran’s exports to zero, impacting the availability of crude, and we can expect summer fuel prices to skyrocket here in the UK.”

“Beyond Iran, instability in major oil-producer countries like Iraq, Libya and Venezuela has resulted in the relative scarcity of crude supplies.

Seasonality

Supply and demand is a large contributor to winter price rises. When heating oil users require kerosene, this puts a strain on the supply chain due to this fuel being produced at the same time as diesel.

Exchange rates

Any fluctuation in the pound, such as the volatility we’re seeing as a result of uncertainty surrounding Brexit, impacts the final price of diesel and fuel in general; a weaker pound makes it more expensive for fuel suppliers and retailers to buy it.

 Location

Unlike most products, retailers don’t need to have a national price, and remote locations can make up the overheads of lower prices in more competitive locations. “Also, depending on how far away you are from your supplier, it costs more to have fuel delivered, and that will be factored into the price.”

www.speedyfuels.co.uk

 

Post a comment or leave a trackback: Trackback URL.

Post a Comment

You must be logged in to post a comment.