The average price of bulk diesel rose sharply in October after three consecutive months of reductions to September, according to data collated by trade body RHA.
RHA’s calculations show that the average excluding VAT in October was 151.03ppl, up by 9.74ppl or 6.9% from the previous month. October also saw the price of Brent increase – although it remains well below the highs seen earlier this year – and sterling remained constant, albeit depressed, against the US dollar.
October’s average figure is the second highest since the current fuel crisis began, beaten only by the 155.41ppl seen in June. The latter reduced during following months, but at a slower rate that that at which is rose from May. The US Energy Information Administration predicts that diesel prices will fall in 2023, although not to the levels seen in 2020 or 2021
The jump seen by RHA members in October is reflected in actual quotes, which extended from 145.88ppl to 157.58ppl during the month. It is now 17 months since the average figure was lower than 100ppl. Sterling has weakened significantly over that period.
In July, the Competition and Markets Authority reported in its road fuel review that poor exchange rates had added 7ppl to the price of fuel. Sterling has lost further value since then. The price of oil has also decreased over that period, although its October rebound will be unhelpful.
Despite the gloom around diesel, RHA noted earlier in October that a short-term shortage of the fuel existed in Europe. That was in part due to strikes at oil refineries in France and other issues in the Netherlands. The former constriction started to abate towards the end of the month, although some refinery workers remain on strike.
12-monthly figures from RHA show that the average bulk diesel price has increased by 36.26ppl, or 31.6%, since October 2021. At that point it was 114.77ppl, dropping to 111.73ppl in December of that year before rising sharply.
Anecdotal feedback from some coach operators holds that while diesel prices remain problematic, strong demand for coach hire continues to support rates that absorb the cost increase.
