Legal Brief
RHA Survey Shows Fuel is Still the Issue
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The survey, reviewing costs between 1st October 2005 and 30th Sept 2006, has shown that if the cost of fuel is initially ignored, when a 3% increase for Drivers Wages, and an increase in finance charges of 5.6% are included and other cost increases are taken into account, costs have increased by 1.9%.
However, as a result of fuel price fluctuations, had the survey been carried out on 1st July the overall figure (including fuel) would have shown an operating cost increase of 8%. But because of the very recent reduction in the price of fuel as at 30th September the overall Operating Cost increase has reduced to Nil.
Bob Russett, Chairman of the RHA Business Information Panel says "This shows that operators need to be alert to fuel price increases - the calculations show that even a small increase in fuel costs will significantly increase their operating costs. Operators must agree with their customers a fuel price escalator or surcharge mechanism."
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Given all of this it is a little surprising how hard it is to communicate the message that real fuel cost saving technology exists. Perhaps the many false starts in the past can explain it, but there is ample real evidence from customers who do use fuel saving technology which replaces expensive diesel with cheaper LPG that it relly works. We have such a system (www.multifuel-technology.com) but it is not always easy to reach hauliers and to let them know about it. Perhaps it might be worth some of the trade press, including TNN, writing about the systems that are available on the marketplace.
David Abbott
Managing Director
GSPK Multifuel Technology