Diesel prices will rise again before they fall

Fleet managers could soon see their fuel bills rise still further despite the fact that diesel has already broken the £1 per litre barrier.

Industry analysts believe that demand for heating oil over the winter will put even more demand on already stretched reserves. As a result, prices at the pumps are likely to continue to spiral until well into the New Year.

A spokesman for the AA, Luke Bosdet, said diesel prices will almost certainly rise again before they fall.

He explained that there is a hope that prices may come down after the New Year but he is almost certain that they will remain above £1 a litre, and will probably rise again before then.

The situation has been made worse by the decision of the Chancellor to impose an extra 2p per litre fuel duty on diesel earlier in the Autumn.

One fleet manager, who manages a fleet of 530 cars and vans is reported as saying that the recent price increase will add some four per cent to his annual £1.5 million fuel bill.

He said cost of fuel should be reduced as much as possible and drivers need to be educated to fill up at lower-cost outlets.