The rising cost of fuel is a topic that has been everywhere lately. Pumps are beginning to sell out of fuel once again and, for those filling up at pay at the pump sites, the limit no longer allows for a full tank to be purchased. During the pandemic, prices dropped to around £1 per litre, a big difference to the almost £2 per litre we are seeing now.
The future of fuel
With the war in Ukraine being a driving factor, along with additional sanctions on Iran from the USA, the price rise does not look to end shortly. In his mini budget, Chancellor, Rishi Sunak, is expected to announce a cut to help with fuel prices but, with the rumours being at 5p a litre, it is a far cry from the increases seen of over 50p a litre in the last month.
The obvious businesses impacted are those that are transport focused such as haulage, taxis, bus and coach, and any form of delivery service. However, it is expected that those businesses whose staff earn minimum wage may see an impact. The rising cost of fuel coupled with the increase in living costs could see staff members unable to fill their cars as they prioritise other increasing bills or having the money for public transport to get to their place of work.
Businesses are advised to review their budgets and rates on a monthly basis during these profound times to ensure that the rates they are charging take into account the increases and cover costs. Budgeting for longer periods is difficult when the costs are increasingly almost daily. Many businesses find the use of software to budget and forecast beneficial to their businesses during these uncertain times.
Businesses have already absorbed many rising costs and ensuring there is a proactive approach to the changing times is needed to protect your businesses and its cashflow.
Focus on what you can do
Whilst these prices are a concerning factor there are other things you could do to help reduce costs, such utilising fuel cards which give discounted rates or reviewing travel across the business and whether it is crucial. For example, could meetings be conducted virtually or perhaps could staff work at home a day or more a week to reduce travel costs for those struggling?