Diesel prices: further falls anticipated

Last week bulk diesel prices rose slightly, by around 0.6 pence per litre (ppl) to 85.2ppl as at Friday 5 December.

Bulk gas oil prices as at Friday averaged 42.1ppl. However, world oil prices fell sharply last week, with crude oil touching a low of $39.7 a barrel - levels last seen in December 2004.

Based on the current Rotterdam diesel commodity price, FTA estimates that bulk diesel should be reduced by a further three to four pence per litre.

Last week FTA Chief Executive, Theo de Pencier wrote to the Chancellor of the Exchequer, Alistair Darling, reiterating industry’s dismay at the fuel duty increase re-introduced in the Pre-Budget Statement.  The letter calls on the Chancellor to act to support the freight industry through fuel duty decoupling, rather than imposing further burdens on operators with planned duty increases in April 2009 and April 2010.