Too expensive to fill up! Fleet Voice
Fleet Voice Column. March 17, 2010.
The 2010 Formula One Season kicked off in Bahrain and saw Spaniard Fernando Alonso take a win on his Ferrari debut.
It was a mixed event for British challengers, as Lewis Hamilton made it onto the third step of the podium, however reigning world champion, Jenson Button had a frustrating debut for the McLaren team as he finished in seventh overall.
However, much of the talk before, during and after the race was to do with the rule changes that the FIA had come up with in the close season.
The changes to the regulations for this season includes a ban on refuelling during a race, meaning cars must run with a full load from the start of a grand prix, in addition to this, those whom qualify inside the top 10 on the grid must begin the race on the tyres they used in the final qualifying session.
With no refuelling F1 is trying to save costs and go greener but did it work or was the race a procession?
With hardly any moments of brilliance or overtaking in 49 laps Fleet Voice believes that the FIA will have to think again. Even the drivers claimed it was dull.
Refuelling is not just being questioned in F1 at the current time, I am sure a lot of you fleet managers are questioning how often your cars need to be topped up.
Are you getting good economy from your drivers? Or are they being too heavy with the right foot?
According to research released by the AA, post credit crunch, the UK has been hit hardest by taxes on fuel duty. The statistics show that we have been hit five times harder than our European neighbours, no wonder every fleet in the UK are closely monitoring the fuel that they use.
Since the Pre-Budget Report on 24 November 2008, the burden of fuel duty and VAT on a tank of petrol in the UK has gone up 11.46%, compared to just 2.23% in Austria. The average increase for 10 mainstream European countries, including France, Germany, and Holland, is 5.07%.
Even if you have a number of frugal diesel vehicles, the calculations do not make for good reading, why?
Well the price at the pump has risen nearly three times more than the average increase for the 10 European neighbours.
So what next?
The Government has announced that the Budget will take place on March 24 and give fleets an Easter present by adding, inflation +1p, to fuel duty on April 1, do not be fooled, as this is no joke!
Let’s do a few calculations – take that inflation on this date is due to be about 2% inflation rate, this would mean that fuel duty will rise from 56.19p a litre to 57.31p or 1.12p more. With the additional 1p + VAT at 17.5%, drivers will pay 2.49p a litre more for petrol and diesel. Source: European Commission for Energy statistics
With the new registrations due to come (number plates with 10 as an identifier) in, I am sure a lot of you fleet managers will be watching the Budget with great interest.
Many of you are in the process of downsizing your fleets, however, frugal engines and possibly electric powered vehicles for in and around town may be essential to keep costs down.
The problem for the Government is that further taxations on motorists could backfire – higher fuel prices will surely cut demand, this could then harm the public purse, economic recovery, fleets, hauliers and car owners.
Surely fleet bodies and pressure groups need to sit down with those who are determined to further tax the motorist and explain that it is motorists that keep the nation moving!
As F1 starts a new season with a ban on refuelling, fleets are coming to terms with what is expected to be further hikes in duty come the Budget
Hopefully fleets can find a solution to what is likely to be a further pressure on your purse. Downsizing vehicles, opting for more fuel-efficient engines and possibly looking at electric vehicles, are all options that you will have to look at if this hike in fuel duty continues…
Simon McBride
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