25% increase in annual fuel prices drives fleet costs up by millions

With fuel prices across the UK reaching record-breaking highs in 2022, businesses are feeling the pressure, with large fleets facing a potential £11 million increase in annual fuel expenses.

A look at the impact on fleet fuel costs of record pump prices

Recent data from independent fuel card distributor, Right Fuel Card, revealed the differences in fuel prices across the UK in October 2022 against October 2021. Overall, the average price of fuel had shot up to £1.81 per litre compared to £1.35 per litre in 2021 – an increase of 25%.

As a result, the cost to fill just one HGV tank in October 2022 was £467.50, compared to £340 in 2021. For large haulage companies running fleets of around 2000 HGVs, it means a year on year increase in fuel expenditure of just under £12 million.

Core stats from the study

The study extrapolates the pump price increases to gain insight into the potential impact on annual fuel expenses for varying fleet sizes.

Price increase for one HGV:

Based on an average HGV driver doing around 100,000 miles per year, the increases will be:

  • +£127.50 per tank
  • +£497.29 per month
  • +£5,967.53 per year (taking yearly expenditure to £21,880.93 compared to £15,913.40 in 2021)

Price increase for a modest haulage company:

Based on the above figures for one HGV driver, a company with 100 HGVs will see increases of:

  • +£49,729.38 per month
  • +£596,752.58 per year (taking total fuel costs to £2,188,092.78 compared to £1,591,340.21 in 2021)

Price increase for a large haulage company:

A company with around 2000 HGVs will see major differences:

  • +£994,587.63 per month
  • +£11,935,051.55 per year (taking yearly costs from £31,826,804.12 in 2021 to £43,761,855.61 in 2022, an increase of almost £12 million!)

Top 10 Most Expensive Regions – Diesel

Prices as of Right Fuel Card study October 2022

Top 10 Cheapest Regions – Diesel

Prices as of Right Fuel Card study October 2022

Helpful insight

David James, sales director at Right Fuel Card commented: “All fleet businesses, big or small, will have been hard pressed to not feel the pressure of increasing fuel prices that we’ve witnessed this year. We hope the findings from this study provide businesses with genuine insight into how fuel costs have changed in 2022 and help them to plan for the months ahead.”

“At Right Fuel Card, our goal is simple; cut our customers fuel costs by saving them time and money. Whilst the key benefit of fuel cards is to save money off the pump price of fuel, it’s the wider administrative savings – such as reduced time spent looking through receipts and VAT reclaim – which set them apart from using credit or debit cards for fuel purchases.”