The incredible rise in fuel prices over the last few months has left many consumers worried about how they will cope with higher costs in the future. But business is suffering as well. As gas and oil prices continue to escalate, manufacturing companies are struggling to keep their processes flowing at levels that will still turn a profit. Supply chains are under threat as hauliers and couriers accept the fact that in order for deliveries to continue, they must also allow more financial resources for distribution.
And of course, the ultimate victim from all of these changes is the man on the street. As well as finding money to heat our own homes, we also have to deal with the fact that petrol prices are now at levels never seen before in the UK.
What has Caused the Rise in Fuel Prices?
There is a temptation to put all the blame for the rise in fuel prices on the troubles caused by the conflict in Ukraine. It is certainly true that since the beginning of sanctions, the price of fuel has gone through the roof but the issue was already a concern before this time. Over the last two years we have seen many changes and crises (Brexit; Covid; etc) which could all have had an effect on inflation. For instance, there was a global increase in demand for fuel as Covid restrictions ceased.
The Storage of Gas
The UK is not alone as it struggles with rising fuel prices – across Europe, countries are dealing with exactly the same exorbitant costs as we are. But one factor contributes a great deal to our problems: Our storage of gas in this country is very low. Much lower than other countries in Europe. What this means is as demand increases with low supplies, prices have increased.
In order to offset the shortage of gas, the British government usually buys liquified natural gas (LNG) but this year it has been unable to do this because of the new demand for LNG from Asian and South American countries. The demand here has increased to enable them to transition from coal to gas.
So, demand continues to increase, supplies remain low and prices skyrocket.
Couriers, Ukraine and Fuel Prices
It is interesting that the UK only gets about 5% of its crude oil and gas from Russia. But prices continue to rise on forecourts because sanctions on Russia constrict supply and so drive up prices worldwide. As prices per barrel increase, there is a glimmer of hope that drivers and couriers may soon see a respite in rising fuel prices.
Solutions for Couriers?
This is dependent on three main areas:
- We are able to obtain fuel and gas from other countries other than Russia
- The conflict in Russia and Ukraine comes to a peaceful end through further talks and negotiations
- The government agrees to reduce the tax on petrol
Either way, any change is not going to happen overnight and we are likely to be seeing high fuel prices and inflation on our high streets for some time to come.
Here at Same-Day Dispatch Services Ltd we partner with a wide network of couriers across the UK and the globe. We may not be able to halt inflation but we can continue to search for the very best deals to get your consignment to where it needs to be. To learn more call us on 0800 999 1010 or, to get an estimate for your project click here