Business mileage rises 2.51bn in June as Covid-19 lockdown eases

Businesses travelled an estimated 2.51 billion miles more in June than May as the Covid-19 pandemic lockdown measures eased, figures from Allstar Business Solutions show.

The findings have been released as the fuel card provider launched its Business Barometer, which will track business mileage as an economic indicator of sector recovery.

The report supports figures released earlier this week from Geotab and Webfleet Solutions which reported the UK’s transport sector activity has recovered to 84% of its pre-coronavirus baseline. 

A week earlier, Department for Transport figures showed the number of vehicles using UK roads has almost returned to normal. 

Meanwhile, data from Verizon Connect has shown that hours spent on the road by UK commercial drivers dropped by 55% between mid-February due to lockdown measures. Its data from April 7 to May 5 saw hours increased 22%.

Paul Holland, MD of UK Fuel at Fleetcor, Allstar’s parent company, said: “It comes as no surprise that a significant impact has been felt across the board but every litre of fuel used since lockdown tells its own story of a business adapting, and often diversifying, to meet changing needs.

“It’s promising to see further signs of recovery as vehicle fleets that were mothballed in full lockdown have begun to re-emerge, helped by fuel prices broadly remaining at a four-year low.

“Looking ahead, the pace at which businesses return to a more normalised performance and whether we see a change in patterns of business travel and an ongoing increase in home deliveries will be fascinating.”

The analysis showed some industries are currently recovering at a faster rate than others, with month-in-month increases ranging from 11.3% to 101.6%

Arts, entertainment and recreation rose quickest (101.6%) followed by education (47.5%). Fuel usage in the wholesale and retail sector rose by 46%, manufacturing 40.5% and construction sector 34.3%.

Conversely, agriculture, forestry and fishing rose 11.3%, utilities 20.2% and transportation 22.1%.

Tracking the recovery month on month: June versus May 2020

Weekly fuel consumption: peak lockdown (w/c April 6) versus w/c June 29

2.51bn mile projection based on extra miles travelled by Allstar’s customers travelling in June 2020 versus May 2020. This has been extrapolated to the full UK business population based on Allstar’s estimated commercial fuel market share.