Fuel price increases and courier services affect us all, there is no getting away from it to keep warm we have to go without.
Since petrol prices hit an all-time high in the UK in 2022, leaving car owners devastated and afraid.
Also, this affected people working in the private hire sector as the cost of living went through the roof.
Courier prices were to go up and the cost of living wages was to fall, the question is what to do next.
The crude rise of fuel and contributing factors
Fuel prices have not gone down this year. In fact, they have been steadily increasing since the start of the year.
The average price of petrol in the UK is currently 179.33p per litre, and diesel is 182.39p per litre.
This is the highest level that fuel prices have been in the UK since 2012.
There are a number of factors that have contributed to the fuel price increases and courier services, the war in Ukraine, global economic recovery, and the rising cost of crude oil.
Government help – in one hand and out the other
The war in Ukraine has caused oil prices to rise, as Russia is a major producer of oil.
Also, the global economic recovery has also led to an increase in demand for oil, as more people are travelling and driving.
Coupled with the rising cost of crude oil which has also pushed up fuel prices, it is not clear when fuel prices will start to come down.
However, the government has announced a number of measures to help motorists, including a cut in fuel duty.
This is expected to reduce the price of petrol by 5p per litre and diesel by 6p per litre. The cut in fuel duty will came into effect on 23rd March 2023.
The rising fuel prices have had a significant impact on the same-day courier industry
The fuel surcharge is a charge that is added to the cost of a delivery to cover the cost of fuel. As fuel prices have risen, so too has the fuel surcharge.
Fuel price increases and courier services has made it more expensive for despatch companies to offer same-day delivery services.
Which has led to some businesses increasing their prices or offering slower delivery methods.
In addition, the rising fuel prices have also made it more difficult for couriers to find drivers.
This is because drivers are now facing higher fuel costs, which makes it less profitable for them to work for courier companies.
As a result, there is a shortage of drivers in the courier industry, which is further contributing to the rising costs of same-day delivery.
Cutting costs to keep prices low
To overcome these challenges, Xtra Mile Couriers and other despatch companies are looking for ways to reduce their fuel costs.
This includes using more fuel-efficient vehicles, optimising our routes, and using alternative fuels, despite these challenges, the same-day courier industry is still growing.
Furthermore, we are also working to improve our efficiency and productivity in order to reduce the number of deliveries we need to make.
Also, this is because businesses are increasingly demanding same-day delivery services to meet the needs of their customers.
Finally, courier companies are finding ways to adapt to the rising fuel prices and continue to offer same-day delivery services.
Here are some of the ways that courier companies are adapting to the rising fuel prices:
- Using more fuel-efficient vehicles:Â Courier companies are investing in more fuel-efficient vehicles, such as electric vehicles and hybrid vehicles. These vehicles can help to reduce fuel costs and emissions.
- Optimising their routes: Courier companies are using technology to optimise their routes. This means that they are able to plan the most efficient routes for their deliveries, which can help to reduce fuel consumption.
- Using alternative fuels: Despatch companies are also exploring the use of alternative fuels, such as biomethane and hydrogen. These fuels can help to reduce emissions and improve the environmental impact of the courier industry.
- Improving their efficiency and productivity:Â Courier companies are also working to improve their efficiency and productivity. This means that they are finding ways to do more with less, which can help to reduce fuel costs.
The rising fuel price increases and courier services are a challenge for same-day deliveries, but there are a number of ways that courier companies are adapting to these challenges.
By investing in new technologies and improving their efficiency, shipping companies are able to reduce their fuel costs and continue to offer same-day delivery services.
Same-day transport and other automobile industries
The transport industry in the UK has been through many changes in recent years causing many challenges.
Firstly Government and local authorities faced challenges in the year ending March 2021 with a shortage of HGV drivers.
Secondly, shoppers noticed a massive dip in products being available on our supermarket shelves.
Ultimately this was mainly due to Brexit our departure from the EU meant our exports were down.
In fact, this industry alone is responsible for a 161.6 billion turnover in Great Britain, but huge changes challenge this.
Questions that need answers?
Q. Why does this make a difference to Britain and its import and export industry?
A. The answer is simple, you’re an HGV driver arriving from France, unloading your cargo in Portsmouth then picking up another load.
If that load happens to be in London, you wouldn’t want to drive to London with an empty vehicle, would you?
For instance, to make it pay you would want to pick up a load on the way before reaching your final destination.
Presently fewer trucks mean this is unlikely, to meet supply and demand we need more UK lorries on our roads.
Coupled with fuel prices rising the impact is massive on this industry, as goods are travelled all over the world.
Record highs and job lows: Fuel Price Increases and Courier Services
Fuel price increases and courier services decline reached record highs in the UK in 2022 and didn’t look like they were about to fall.
Petrol hit an all-time high of 191.53p per litre diesel beating it by 7.52p per litre this was incredible.
The last time that diesel surpassed petrol in the UK was 1996, 26 years ago it was around a penny more.
In 1998 the price of diesel started to fall meaning the transport industry could breathe a sigh of relief.
Click on the link to follow weekly fuel prices. https://www.statista.com/statistics/1293135/uk-weekly-average-gas-prices
Current Prices 2023
- Unleaded 148.59p
- Super unleaded 165.18p
- Diesel 170.71p
- LPG 82.55p
These prices are based on the latest average costs of fuel across independent forecourts and supermarkets.
The fuel price increase is making it difficult for supermarkets to compete with independent companies.
Meaning it’s only a matter of time before independent companies are having to close their forecourts.
Fuel price comparison 2013
- Unleaded 134.68p
- Diesel 140.72p
This is a fuel price rise on unleaded of 13.91p in 10 years
Probably the biggest shock is the rise in diesel prices during that period an increase of 29.99p.
Fuel price mechanism
Have you ever wondered how fuel prices work, take a look at Fuel Card Services report. Click on the link: https://www.fuelcardservices.com/how-do-uk-fuel-prices-work
- Combined wholesale cost, distribution cost and retail margin.
- Fuel duty owed to the government.
- VAT.
The fuel price increase and courier services has three main factors to consider the price to acquire, refine and distribute this product costs billions.
Along with government taxes and geopolitical events, it is no wonder fuel costs have shot up in recent months.
How is fuel made
Fuel is made from crude oil, meaning coarse and unrefined in its raw state which is of no use to anyone.
We have to refine the oil in many stages to achieve a lighter crude used in vehicles known as sweet crude.
Refining oil into a high grade for transportation use is a costly process paying refiners to distil is high.
No matter what though it is a necessary process that cannot be avoided in the fuel industry.
Or any other industry that needs that fuel, for example, Dispatch Courier Services or electricity companies.
Then what?
The next process is to ship the refined gasoline to storage tanks, which has many hazards when delivering such cargo.
As a result, the irony is that without the gasoline it wouldn’t be possible for the ships to complete this process.
Finally, it’s then distributed to local supermarkets and forecourts completing the process of the gasolines journey.
In conclusion, there are many processes involved in the fuel price increase and many salaries to pay.
Electricity and fuels
Electricity is created with fossil fuels generally burning carbon fuels such as oil, coal or gas.
This generates steam which then drives huge turbines thus producing electricity.
Fossil fuel is very complex and therefore complicated to explain, it is a fuel formed from a natural process.
For more information on this subject follow the link: https://www.nationalgeographic.org/activity/electricity-sources-and-challenges
The Importance of electricity
Our whole world is run on electricity it is a product that we simply cannot do without in this day and age.
Lighting up our worlds and heating our homes in the coldest months as prices creep up our thermostats go down.
While electricity is a magnetism that breathes life into our digital world, it is also the force that joins us together.
In effect, without electricity, we would not be able to operate the magnificent machinery that saves so many lives.
We simply couldn’t exist without it, it’s an essential, powering the offices and homes that make us who we are today.
Energy costs rising
The fuel price increase is on the up and so is energy consumption, making us particularly conscious of usage.
Notably, the reason for these price increases is as in the above, so try doing energy cost comparisons.
Prices started rising in 2021 before that they had been falling most of the time or at least remained stable.
A Question Asked: Fuel Price Increases and Courier Services
Q. What will happen with our energy prices in 2023, will they keep on rising or will they plateau?
A. Who can answer that question in such unprecedented times as these, it is difficult to predict.
Although without a government price guarantee, prices will keep on rising for the consumer even with a price cap promise.
OFGEM
The Office of Gas/Electricity Markets (Ofgem) is responsible for regulating companies running gas/electricity networks.
In turn, this means keeping an eye on prices and capping the maximum price that suppliers can charge.
As a result, a temporary measure to protect consumers is The Energy Price Guarantee halting increases in wholesale prices.
Ultimately all of the above is a huge concern to Xtra Mile Couriers as we like to keep abreast of such matters.
As a result, we are continually researching price increases whilst trying to keep our prices as low as possible.
Other blogs that may interest you
- Using A Courier Service
- Goods In Transit Insurance
- Sustainability Within Transport
- Electric Courier Vehicles
Reliability is key to our industry
Need a same-day delivery service that you can rely on? Xtra Mile Couriers is here to help! We offer a wide range of same-day delivery services, including:
- Same day delivery
- Scheduled Delivery
- Medical Courier
- On-Demand Delivery
- Multi drop Delivery
- Single item delivery
- Direct Delivery
A parcel delivery service you can rely on whether your goods are rapid response/urgent couriers we handle it all.
