Fuel Surcharges Introduced As Diesel Prices Climb
With the UK’s average diesel prices reaching a 16-month high last week, fuel surcharges are now being applied to transport services across the UK with immediate effect.
Following disruption to global oil production and distribution caused by the escalating conflict in the Middle East, several UK transport operators have already notified us of fuel surcharges ranging from 8% to 15%, with most taking effect from March 9.
However, many of these increases were announced when oil prices were trading at around $83 per barrel last week. Prices then rose sharply over the weekend to approximately $107 per barrel. While this latest increase may take a week or two to be reflected at UK fuel pumps, it suggests that further fuel surcharge increases may follow.
The main driver behind the spike in oil prices is disruption in the Strait of Hormuz — the narrow shipping channel in the Persian Gulf through which more than 80 oil tankers normally pass each day. With traffic through this critical route currently reduced to a trickle, global fuel supply has tightened, pushing petrol and diesel prices higher across international markets.
The effects are also being felt across ocean and air freight sectors, where carriers have begun introducing additional fuel and conflict-related surcharges.
Killick Martin therefore has no option but to apply the relevant surcharges to all existing tariffs. However, we will continue working with our UK and international partners to mitigate the impact wherever possible.
We will monitor the situation closely and keep customers informed as developments continue.
