Fleet News

Alphabet fleet saves £10m on fuel since oil price falls

Tumbling oil prices have pumped £10.7 million-worth of savings into the fuel budgets of Alphabet customers and their drivers in the UK since September.

The cost of refuelling the 122,500 cars in Alphabet’s combined vehicle portfolio of 131,000 cars and commercial vehicles has fallen by up to £750,000 a week.

At the end of January 2015, Alphabet calculated its vehicles were using £4.3 million of petrol and diesel a week, compared to £5.0 million in September 2014 and nearly £5.5 million a week in 2013.

At the end of January 2015, Alphabet calculated its vehicles were using £4.3 million of petrol and diesel a week, compared to £5.0 million in September 2014 and nearly £5.5 million a week in 2013.

Mark Gibson, head of marketing and business development at Alphabet cautioned fleet operators not to plan on fuel prices staying down for the long term.

He said: "Non-OPEC oil producers are already cutting jobs and capital expenditure deeply, which will feed through as reduced supply later this year.’

"Once the current excess inventory is used up, the oil price is expected to climb again as demand exceeds supply, followed by an increase in the cost of diesel and petrol."

Gibson added: "The big picture to keep in mind when developing the plans for the future of your vehicle fleet is that the worldwide number of vehicles has increased by 35% since 2005, while the supply of petroleum fuel has only risen by 12%. Therefore basic economics suggests that the periods when fuel prices reduce in future will be the exception, rather than the rule."


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Comments

  • Soul trader - 12/02/2015 13:35

    Make the most of it as I cant see the government standing by watching their tax revenue go down the drain. Prices already creeping back up again

    • Sage & Oinion - 12/02/2015 15:02

      @Soul trader - you're dead right! I suspect that it's the loss of duty and vat revenue that is preventing governments to fully stand behind and support alternative fuels and invest properly in their infrastructure. At least until they work out a way to tax the alternative fuels!

  • Sage & Onion - 12/02/2015 14:59

    Whenever the likes of Shell and BP announce their glorious quarterly or annual profits, I usually question their fuel pricing policy but I'm always told that their profits are only pennies per litre and prices have to remain high because that is what is paying for future oil exploration and extraction. So if they are cutting jobs and capital investment in this area then shouldn't it follow that prices should fall? I can dream but one day they may admit its for the shareholders and to satisfy shareholder greed more than affected by supply and demand or future extraction costs.

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