Despite the chancellor trying to win over motorists by staggering the fuel duty hike, the cost of fuel at the pumps will rise by 2.35p per litre from April 1st.
It is the latest in a long line of forecourt increases fleets have had to face and has led to ProtecoEnergy launching a fuel price protection product for the industry.

“Large companies within shipping and the airline industry have long since used the financial markets to buy protection against fluctuating energy prices,” explained Henriette Lonkvist, chief executive officer of ProtecoEnergy. “However, we are now offering fleets the opportunity to obtain the same kind of protection.”

Fleets tell ProtecoEnergy via its website their planned fuel consumption, the required protection period (from 1-24 months) and the maximum price they are willing to pay for their fuel.

It then works out the premium the customer will have to pay, as well as advising on the expected price savings during the agreed price protection period.

Compensation is then paid during the months where the prices are higher than the agreed price cap. “This will enable companies to improve their budget forecasts and improve their business competiveness,” said Lonkvist.

The system also allows for companies to offset their carbon footprint online through a partnership with The CarbonNeutral Company.

Alistair Darling had announced he would be dividing up the controversial pump price increase by introducing a 1p rise in duty on April 1, a further rise of 1p per litre on October 1 and the final 0.76p hike coming in January 2011.

However, the Petrol Retailers Association has pointed out that the chancellor omitted to mention the Government has withdrawn a subsidy to the refining industry to produce clean biofuels from April 1, which will actually result in an initial increase of2.35p per litre.

However, in addition to fuel price protection, fleets are also being urged to consider an eco-driving course to cut fuel costs.

“With consumption reductions in the order of 12-15% possible, you could cover the cost of the course in a matter of months and the resultant change in driving style brings many other benefits too,” explained Steve Johnson, of AA DriveTech.

Fuel duty will also rise by 1% above inflation – likely to be the equivalent of another 1ppl in real terms - on 1 April each year from 2011 to 2014. 

Find out if you could save on what your fleet is paying in petrol, visit the fleet news petrol prices page for more information.