You may not have noticed, but it is that time of year again. No, not Christmas, Hannukah, Bodhi or any of the other festivals, but the rapidly approaching end of the calendar. This is a time of looking back over the last twelve months and, invariably, reminiscing about years gone by. For anyone involved with managing vehicles, this often means misty-eyed nostalgia about how much easier and cheaper life used to be: “Remember, way back when, how we could fill the tank for under £1 per litre?”

Oh. Hang on…

It may take an eternity to be reflected on forecourts, but oil prices have been falling through the floor. It is less than 18 months since the $100 barrel and the world spent 80% of the last five years paying $80+. December saw the price drop below $40 for the first time since 2009. The RAC cheerfully forecast that consumers would enjoy the £1 litre by Christmas. For commercial road users, however, that psychological barrier had already been broken. Factor out the VAT – which you do reclaim quickly and easily, don’t you? – and the average litre of diesel already costs under 91p, with unleaded a couple of pence cheaper.

Happy days are here again.

Well, maybe. For those folks using bunkering or, even worse, with their own giant tank in the yard, rapidly falling prices may not be such good news. Imagine placing a bulk order, anywhere between 20,000 and 200,000 litres, then seeing the ‘discount’ price beaten on the forecourts within days. Having committed a large amount for fuel, what do you do? In reality, you just have to go ahead and use what has now become expensive fuel. If you are committed to that type of refuelling, you probably lack the necessary systems to switch to an alternative means of procurement. So, grit your teeth and make a note to review fuel cards before much longer.

Those running vans and cars may not face exactly the same stresses, but they have challenges of their own that could prove at least as expensive. While falling fuel prices really ought to bring smiles all around, some people may find themselves spending more – without realising that it is happening. You might be surprised initially by the reason for this, but can expect to find yourself nodding in rueful recognition.

Read more about it, here: http://ow.ly/VUb8G