Ukraine Unrest May Impact Fuel Prices
The Fuel Card Group has echoed previous warnings issued by the RAC regarding the likelihood that the political unrest in the Ukraine will raise fuel prices throughout the United Kingdom.
The statement issued last month by the RAC had indicated that “the fuel market is intrinsically linked to major international political events,” and now Steve Clark of The Fuel Card Group has reiterated the sentiment, saying, “Managers should not be surprised when pump prices rise because oil is such a sensitive, volatile market. We saw price hikes of varying duration following the invasion of Kuwait, when Hurricane Ike hit Texas and after Chavez died in Venezuela. Anything upsetting the status quo in an oil-producing region, even a simple currency fluctuation, will affect prices.”
Despite the concerns being voiced, fleet managers are being advised not to panic. Prices had already begun to rise based up the US dollar strengthening against the pound, and Clarke reminds businesses that prices are always likely to rise and that those increases should be built into budgets and combated through careful purchases. “Fuel prices occasionally fall for a while, but the historical trend is always upwards, as it is for everything else. The only sensible action is to ensure that you are always paying as little as possible for fuel in the first place.”