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Fuel Surcharge
 

OUR CURRENT BULK BUYING PRICE IS: 100.60 PENCE PER LITRE

(WEEK COMMENCING 28th April 2008)

We review and adjust our fuel surcharge on a weekly basis.

Major account customers have individually negotiated fuel surcharges which may be different from the illustration below.

The following table indicates the effect of fuel price increases on our operating costs.  Every 1 pence per litre difference in fuel impacts on overall costs by .5% as illustrated by the table below.

 

Cost - Pence Per Litre

78

79

80

81

82

83

84

85

86

87

88

89

90

91

92

Fuel Surcharge %

0.0

0.5

1.0

1.5

2.0

2.5

3.0

3.5

4.0

4.5

5.0

5.5

6.0

6.5

7.0
WHY DO WE APPLY A FUEL SURCHARGE?  

No-one can have failed to notice that every time they fill their car up, it costs more and more.  As consumers we tend to mentally offset the higher prices against the convenience of being able to transport ourselves when and where we wish.  Only every now and then, are fuel prices placed at the forefront of the public's mind when dramatic newspaper headlines or pictures of strike-bound holiday-makers focus attention on this issue.

But for anyone who distributes goods on a daily basis, fuel prices have direct cost implications on the transport movement.

Fuel represents up to 30% of Framptons' operating costs - we use over 50,000 litres per week, so an increase, for example of 10 pence per litre over a period of time, increases our costs proportionately by a massive £5000 per week!

Manufacturers frequently quote their customers fixed prices and we understand that constant increases due to fuel surcharges do erode margins.  However road transport is no longer the cheap element in the supply chain.

Not only does fuel cost more, we actually pay for diesel on 20 day terms, but receive settlement of our invoices on 30 day terms (at best), effectively acting as the Government's Tax Collectors at our own expense.

You may think that Framptons, as a company, should absorb all these increased costs.  This would certainly mean reducing the amount we spend on maintenance, insurance, and health and safety and halt any investment in training, IT resources, vehicles or other equipment. We would not be able to offer the high level of service that our customers have come to expect from us.  Within a very short period, we would find ourselves in a downward spiral from which it would be very difficult to recover.

The reality is that we have absorbed as much as we possibly can.  We have reviewed procedures, applied innovative systems and we strongly believe that we are a lean, efficient business.  We think that all hauliers who will not compromise the integrity of their service, and who intend to still be in business next year and the years to come, must impose fuel surcharges or recover their increased costs accordingly.

What we can do is ensure that our customers understand the implications for future haulage costs, so that they can budget realistic figures and additionally that they, in turn, can educate their customers about this topic. We hope that the information on fuel here helps you.

   
Fuel cost history  
Week commencing 28th April 2008 100.60 pence per litre
Week commencing 21st April 2008 99.02 pence per litre
Week commencing 7th April 2008 99.66 pence per litre
Week commencing 31st March 2008 96.25 pence per litre
Week commencing 24th March 2008 95.91 pence per litre
Week commencing 10th March 2008 96.45 pence per litre
Week commencing 3rd March 2008 91.74 pence per litre
Week commencing 18th February 2008 90.26 pence per litre
Week commencing 4th February 2008 87.30 pence per litre
Week commencing 28th January 2008 87.29 pence per litre
Week commencing 17th January 2008 87.71 pence per litre
Week commencing 26th November 2007 89.40 pence per litre
Week commencing 7th November 2007 88.30 pence per litre
Week commencing 29th October 2007 84.23 pence per litre
Week commencing 15th October 2007 83.05 pence per litre
Week commencing 24th September 2007 81.05 pence per litre
Week commencing 10th September 2007 79.20 pence per litre
Week commencing 27th August 2007 77.97 pence per litre
Week commencing 20th August 2007 77.70 pence per litre
Week commencing 6th August 2007 78.23 pence per litre
Week commencing 23rd July 2007 77.40 pence per litre
Week commencing 12th July 2007 78.13 pence per litre
Week commencing 3rd July 2007 77.25 pence per litre
Week commencing 18th June 2007 77.90 pence per litre
Week commencing 4th June 2007 77.63 pence per litre
Week commencing 28th May 2007 77.23 pence per litre
Week commencing 14th May 2007 76.10 pence per litre
Week commencing 30th April 2007 76.60 pence per litre
Week commencing 23rd April 2007 75.48 pence per litre
Week commencing 9th March 2007 76.06 pence per litre
Week commencing 12th March 2007 74.58 pence per litre
Week commencing 5th March 2007 75.00 pence per litre
Week commencing 19th February 2007 73.13 pence per litre
Week commencing 29th January 2007 72.45 pence per litre
Week commencing 22nd January 2007 71.27 pence per litre
Week commencing 2nd January 2007 73.57 pence per litre
Week commencing 11th December 2006 74.85 pence per litre
Week commencing 4th December 2006 74.45 pence per litre
Week commencing 20th November 2006 73.90 pence per litre
Week commencing 6th November 2006 73.21 pence per litre
Week commencing 23rd October 2006 74.40 pence per litre
Week commencing 16th October 2006 74.40 pence per litre
Week commencing 2nd October 2006 75.25 pence per litre
Week commencing 11th September 2006 76.75 pence per litre
Week commencing 28th August 2006 79.50 pence per litre
Week commencing 14th August 2006 79.95 pence per litre
Week commencing 7th August 2006 79.75 pence per litre
Week commencing 24th July 2006 78.78 pence per litre
Week commencing 3rd July 2006 80.00 pence per litre
Week commencing 19th June 2006 77.95 pence per litre
Week commencing 5th June 2006 79.15 pence per litre
Week commencing 29th May 2006 77.98 pence per litre
Week commencing 22nd May 2006 77.64 pence per litre
Week commencing 15th May 2006 77.70 pence per litre