The price of bulk diesel fell further in December 2022 according to data compiled by RHA. Members of the trade body saw an 8.6% drop from the previous month to an average of 127.56ppl excluding VAT, putting that figure at its lowest position since February 2022.
Such a reduction followed a 7.6% decline in November. The average price has now fallen by 17.9% from its 2022 peak of 155.41ppl in June, but the December figure remained 14.2% higher than the 111.73ppl of 12 months earlier, and 10.2% above the average for January 2022 of 115.78ppl.
RHA’s figures additionally show that oil prices were at their lowest point for a year in December 2022. The Brent barrel average came in at US$81.70, which compares to a 2022 high of US$118.84 in March. A further positive came with sterling, which once more strengthened against the US dollar.
RHA notes that the lower cost of oil reflects “gloomy financial and economic predictions for 2023 across the globe.” The average figure for Brent is still vastly higher than the US$54.84 seen in January 2021, and sterling has weakened considerably since then.
However, some forecasts suggest that the ongoing reopening of the Chinese economy could negatively impact oil prices. Predictions by the Bank of America (BoA) include a warning that Brent is “expected to average US$100 per barrel over the course of 2023 and spike to US$110 per barrel in the second half of the year.”
BoA cites sanctions on Russia, low oil inventories and a willingness by OPEC to cut production when demand weakens as additional reasons for its gloomy outlook.
A reported reduction in the average bulk diesel price is reflected by experience on the ground, with one coach operator in Scotland saying that it saw a significant decrease in quoted figures from fuel suppliers towards the end of 2022.
