Diesel premiums to rise again say experts

Fleet managers are once again facing rising fuel costs as a result of terrorism concerns and diminishing oil supplies.

According to the AA, in early August the average price of petrol was 96.6p per litre and the cost of diesel 97p – a difference of 0.4p.

Factors such as instability in the Nigerian oilfields, increased demand from the US and China and lagging refinery expansion have all combined to send oil prices to more than $78 a barrel.

As a result, fuel at the pumps could soon cost £1 a litre.

Even the news that the difference between petrol and diesel prices has reduced by around 5p per litre in January is not necessarily good news for managers operating diesel fleets.

A spokesman for a major fuel management company explained that rather than a cut in diesel prices, the change in differential is due to a rise in petrol prices caused by tight refining capacity.

Diesel has always been more expensive than petrol in the UK but in the past two or three months the differential has pretty much disappeared, he said.

The spokesman went on to say that he expected diesel premiums to return as market pressure comes off petrol and pushes prices back down and warned that the difference could rise further as diesel car sales increase.