After a modest majority of the population in the UK voted out of the EU membership, questions are already cropping up regarding fleet costs and fuel price hikes in the UK and Ireland. But what has actually been happening since the June vote for Brexit?
Following on from Brexit, generally speaking, overheads are expected to rise. Of particularly concern to fleet operators include the rising cost of fuel, tolls and any administration charges connected to a possible change in processes currently under EU regulations—which might change for the worse in terms of expense.
But fuel for the moment has not seen a particularly sharp increase in the price (at least not as much as expected). Fuel prices in the UK have in fact only edged up around one and a half pence per litre in the period since the June referendum. The trend is probably going to lead to a further increase in fuel prices, but that is more likely due to the performance of sterling rather than the price of oil, per se.
Barrel prices have dropped during the last couple of weeks, whilst at the same time the pound has devalued. (The two events have managed to cancel each other out for the time being.) The substantial fluctuations predicted by experts and insiders have failed to materialise, and some sources already claim that the result of the Brexit won’t impact too much on the cost of fuel. But other sources claim it is still too soon to tell, since the conditions under which the UK must leave the EU are still to be negotiated.
With regards to Ireland: over the coming days, the government will be holding discussions with other EU members in order to prevent the Brexit fallout from negatively impacting the Irish economy.
We all know that we have negligible influence on factors such as the price of fuel—that’s why we offer you a different, winning strategy to cut on your fuel bills. Whether the Brexit impacts on fuel prices or not, get in touch with us and learn more on how to cut on your fuel and fleet costs.
