Fleet News

Fuel prices set to reach new record

PUMP prices are set to reach an all time high this month as the effects of the Chancellor's Budget fuel duty increases filter through to the forecourts. PHH Vehicle Management Services' monthly fuel price monitor said the current competitive market had forced most retailers to hold pre-Budget prices until well into December before adding on the 3p a litre/14p a gallon increase.

PHH divisional manager- fuel Keith Greenhead said: 'Duty increases only apply to fuel delivered to forecourts after the midnight deadline. This means that pump prices should only go up as a result of the new rate of duty when 'old' stocks run out.

'In the past windfall profits were made by putting up pump prices straight away, but this year it didn't happen because the market is so competitive. Oil companies are waiting for the hypermarkets to apply the increase after which they will all follow suit.' When the increases do come into effect analysts predict fuel prices will reach an all-time high.

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