Further significant diesel price rise coming, fuel card firm warns

Fuel card provider warns of further rise to diesel price level

An imminent further significant rise in the price of diesel looks likely after a fuel card provider warned its customers to expect an increase “of around 10ppl” shortly.

Fuel Card Services made the prediction in an email on 8 June. It says that the increase will likely be seen when customers’ next weekly figures are published. The supplier has thus advised businesses to “take advantage” of current prices. It anticipates that the increase will take effect at 2359hrs on Sunday 12 June, or the same time on Friday 10 June for Esso. 

If the forecast comes true, it will add further stress to those coach and bus operators that do not have hedging deals in place. One member of the industry has suggested that if prices continue to rise and no help is offered by the government, it could even be “game over” for some of those businesses, such is the scale of the crisis.

On the same date that the Fuel Card Services email was sent, RHA warned members that it had seen some “scary increases” in the price of diesel over the previous three days of up to 4ppl within 24hrs. 

RHA has previously warned that sanctions against the supply of fuel from Russia has likely to have an adverse effect on costs. It now says that a change from 1 June in how prices are calculated to remove diesel of Russian origin is a significant factor, as is constricted supply caused by the end of that incoming fuel. 

Strong demand elsewhere globally, including as restrictions in China are relaxed and the holiday season gets underway, are a further influence, the trade body adds. Executive Director for Policy and Public Affairs Rod McKenzie used an appearance on BBC News on 9 June to further underline RHA’s longstanding calls for an essential user fuel rebate.