Thursday, 24 March 2011

Caution - Dangerous Road Ahead. Why Osborne's Petrol Price Cut Won't Save Fleet Managers From Fuel Crisis.

So the chancellor, George Osborne, had been listening to the transport industry after all.

The big business headline in yesterday's Budget was Osborne's surprise decision to cut 1p off fuel duty with immediate effect and freeze the proposed inflation rise in tax for this year, putting it back to January 2012.

The nine month breathing space was greeted with cautious optimism by the transport industry. But prices on the forecourt are still going to be influenced by oil companies and the evidence is that they are going to be climbing  further because of the situation in the Middle East and the greed of the petrol companies.  

As the BBC reported today, that greed was in evidence again yesterday as petrol stations all over the country apparently increased their prices by between 1p and 2p in advance of the budget, wiping out the benefits of the 1p cut at a stroke.

In other words, Osborne's cut is a step in the right direction, but it's hardly a turning point. And when you look at the way fuel prices have been rising during March, you can see that the relief from the tax cut and freeze may not be the life-saver that some people are calling it.

oil prices

So what do we make of all this? Well, one thing is for certain, with fuel prices forcing more and more haulage and logistics companies out of business and oil prices (above) jumping around all over the place and unlikely to become setttled this year, fuel efficiency is going to remain a make-or-break issue for fleet managers. 
All of which means that telematics devices like iBox technology's popular Eco-mate, which monitors everything from fuel usage to harsh braking and idling time, are going to become even more essential if firms are going to protect their bottom lines.  
For more details about the Eco-mate or our other range of innovative tracking devices, contact iBox technology today. 

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