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Fuel supplies and alternatives

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David Preston, Managing Director Prestons of Potto
When I first started writing this column I intended to avoid the subject of fuel costs. However, recent events make it impossible to ignore.

In Scotland news of the refinery problems soon resulted in shortages at commercial stations. The supermarkets appear to have a more robust fuel supply chain but the height of modern tractor units is not always compatible with the canopy clearance available at supermarket filling stations. The anti-syphon guards fitted to combat fuel theft also make it impossible to transfer fuel from one vehicle to another. At one point it looked like we were going to have to send the workshop van to Scotland laden with jerrycans.

You also find that as in the last fuel crisis hauliers who would normally help start holding onto their fuel stocks tighter than a camel's arse in a sand storm. These supply problems will also not help the massive cost increase of circa 40% we have had to deal with over the last 12 months. The frightening prospect is that some sources are indicating that diesel may rise to £1.50 ppl or more by the end of the year, a further 25% increase. With fuel accounting for a third of transport costs this would add up to a 22% increase in the cost of running a vehicle.

Unfortunately the small margins in road haulage mean the cost will have to be passed on in increased transport rates. There is no way such large increases can be offset by operational efficiency improvements alone. Whilst in the past fuel prices have sometimes dropped from peak prices it seems that in the future demand will always outstrip supply so the price of fuel will rise on a continual basis.

However it would seem the problem could easily be solved in Spain the price is approx. 60 ppl. During World War 2 a pipeline was laid in 24 hours to France across the Channel to supply D-Day landings. Surely 60 years later we could do the same. The other alternative would be to do the same as my grandfather did 50 years ago when the Suez Crisis meant diesel fuel was unavailable and bring our Burrell Steam Engine out of retirement. It would have no problems pulling the loads but the London low emissions zone could prove difficult to comply with.

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Founded over 50 years ago Richard Preston and Son Ltd is one of the most recognised transport companies in the UK. Better known as Preston's of Potto it is a multi faceted transport company operating over 220 vehicles. Preston's has 4 depots throughout the UK serving most sectors of the industry. Preston's offers a large amount of warehousing and also provides total management solutions for its varied clients.

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This page contains a single entry from the blog posted on April 28, 2008 12:05 PM.

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