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Blog 28- WHY IS DIESEL SO EXPENSIVE?


This mornings Oil Market information is after recent upturns, is downwardly positive, by opening this week with some news that the fuel market has opened (Monday) a little lower again this morning, this is the turn we’ve been waiting for, because for quite a few weeks now the prices have been going up and up.


Middle of last week reports from traders were reluctant to aggressively sell oil due to the heightened tensions in the Middle East. The Iranian backed Houthis claim the Rubymar cargo ship is sinking in the Red Sea following a missile strike. The vessel is reported to be UK owned. Newswires report the crew were all rescued.


What else can affect the price of your fuel, apart from supply and demand in different areas of the county and World.  Closed Oil rigs due to maintenance or winter storms also affect production. The passage of fuel, if a shipping tanker with fuel is blocked for one reason or another, like the Russian war, or the Red Sea situation, this can drive those prices.


As of 27-02-2024: A report we received was that “Russian deputy Prime Minister and former Energy Minister Alexander Novak that Russia will ban the export of gasoline for six months from 1st March. The move comes following successful Ukrainian drone attacks earlier this year which caused outages at a number of Russian refineries and reduced Russian refinery operating. While Russia does not directly export refined products into Europe due to sanctions, the ban will add further pressure to the market at a time when gasoline stocks are slightly lower.”


UK OIL PRICES:  In the UK We get our fuel prices from Rotterdam, that’s where the Cargo’s are priced for final delivery with set differential costs for each port in Western Europe.  It’s not where we get our physical oil from, that comes from all over the World including the North Sea.   It’s simply a pricing mechanism for all western European areas, including the British Isles and Eire.   


Hence all fuelcard providers start off with an identical pricing model, so if a supplier offers you unbelievable prices, don’t believe them, it’s just to tempt you in!   


At The Fuelcard Centre Ltd we get our weekly pricing advice each Friday, which generates our costs for the next 7 days.  We are a lean traditional family business which allows us to offer consistently competitive prices to our customers, as well as a full range of Commercially priced Fuelcards with comprehensive national networks.  We’ve been involved in the oil industry since 1974 so between us we know most things about our business, and our business is your business. 


Download an application form here at www.fuelcardcentre.co.uk/apply


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