This will push the price of a gallon of both unleaded petrol and diesel over the £3 mark to an average of £3.07 for petrol and £3.20 for diesel. This equates to a 4p a litre/18.2p a gallon increase in unleaded petrol, and 6p a litre/27.28p a gallon increase in diesel.
The result is that the fuel bill for a typical 100-car unleaded petrol-engined fleet averaging 32mpg and clocking up 18,000 miles per vehicle each year will rise by £10,201, according to PHH Vehicle Management. Similarly a 100-car diesel fleet averaging 39.6mpg and clocking up 18,000 miles each year will pay an extra £12,382.
But there is some good news with Brown freezing the duty on ultra-low sulphur diesel, making it 3p per litre cheaper than standard diesel. The Chancellor of the Exchequer says that by using the ultra-low sulphur diesel fleets can expect to reduce carbon dioxide emissions by 20% a vehicle in the first year.
- For your free ACL guide to how this Budget affects company cars - published in conjunction with Deloitte & Touche - click here.