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It will have escaped few people's attention that the price of diesel and unleaded has converged across most of the UK...
It will have escaped few people's attention that the price of diesel and unleaded has converged across most of the UK. Although taken as a national average diesel is a nose ahead at 97.2 ppl compared to unleaded's 96.4ppl, most forecourts have them level pegging.
Such are the mileage efficiencies generally available from diesel that fleet managers could see this latest convergence as an opportunity to permanently forget about petrol as a viable fleet fuel. The cost efficiencies are there to see so it's clearly a no brainer isn't it?
While certainly it's important to be aware of changing market conditions in fleet management, I'd warn against anyone procuring vehicles on fuel type alone. While yes, the current fuel prices might make diesel even more attractive, there is certainly no guarantee that the price differential won't return. In fact it is almost certain that it will.
Buying cars is definitely becoming an increasingly complex business and there are a large number of factors that need to be taken into consideration, fuel being just one. What style of vehicle is needed, how it will be used, is alternative fuel a viable option? What about the driver's tax position? What is the total cost of ownership profile like and will this purchase meet future market requirements? All important questions that need to be considered alongside fuel type.
What fuel price convergence does call to attention is the importance of fuel management. While the costs at the forecourt may look attractive, a true indication of your fleet's fuel costs can only be gained through accurate mapping and monitoring of how and where fuel is being used and purchased. The best way to do this is using a fuel card.
For the time being, the over all efficiencies provided by diesel seem likely to make diesel the fleet managers preferred choice. Watch this space for how things develop in the future.
Until the next time,
Mike
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