Since 28 February, diesel prices have risen by 29p per litre with the average pump price reaching 171.17p according to RAC Fuel Watch. For many operators in the CV space – where of course, the majority of vehicles are diesel-engined – this represents a notable challenge to margins that were already thin.
Hopefully – for many reasons – the current conflict will end in the near future, but with the fragility of fuel supply now very clearly exposed, long-term stability depends on reducing reliance on global oil and gas markets.
Transitioning to alternative technologies, such as battery-electric or hydrogen-cell HGVs, can mitigate impacts and if pump prices remain high, could nudge the needle on total cost of ownership calculations.
Ultimately, though, to insulate from shocks like this and increase our energy security we need to de-couple from global oil and gas markets as much as possible. Gas-fired generation still dictates wholesale electricity prices over 80% of the time according to documents in the Department for Energy Security and Net Zero’s Review of Electricity Market Arrangements. For electrified fleets to be truly cost-effective and stable, domestic renewable power generation is critical, reducing dependency on gas while also helping to ensure that ‘green’ vehicles aren’t being charged up with ‘brown’ electric.
Focusing on infrastructure and energy provision can help reduce the sector’s exposure to future geopolitical instability – helping reduce the risk of inflation, while also encouraging a faster zero emission transition.
