Will the price of diesel remain low?

Although the average diesel price dropped to 144.63p in July 2023, it soon rose again, hitting a high in early October ‘23 of 162.49. (Statista) Since then the average price of a litre of diesel has been falling, dropping to its lowest point of 147.93 in the middle of January 2024 with some websites and pundits predicting a continued low price for some time. We have however recently seen the price of diesel inching slowly higher over in the last few weeks and is now 150.1p/litre (RAC Fuel Watch). 

With the price of crude oil once again starting to rise and influenced by the continued conflict in the Middle East causing disruptions to supply and even with the possibility of a US interest rate cut despite strong US economic indicators (FXempire), the price of diesel is expected to continue rising. 

Reduce the impact of diesel price rises

Investing in Fleet management solutions could be the answer to rising diesel costs 

Rising operational costs demand a response from fleet operators. This is where delivery scheduling and route optimisation will give you a benefit over inefficient routes and rising diesel prices. 

This technology goes beyond simple navigation. It leverages machine learning and AI to calculate fuel-efficient routes based on dynamic traffic flow, delivery priorities, and congestion avoidance.  

Resulting in: 

• Reduced Fuel Consumption: Optimised routes ensure your fleet drives the shortest, most efficient paths for each delivery. 
• Improved Vehicle and Driver Utilisation: The software maximises the capacity of existing resources by enabling more deliveries to be planned per route and ensures your fleet is fully utilised. 
• Increased First-Attempt Deliveries: Customer notifications and real-time delivery tracking ensure that your customers are ready to receive their delivery, minimising costly re-deliveries. 
• Reduced Overall Costs: Optimised delivery routes resulting in a lower fleet mileage lead to less wear and tear, minimising maintenance costs. 

Fuel prices will fluctuate, but the long-term benefits of fleet optimisation software are irrefutable. You'll see decreased operational costs, improved efficiency, and happier customers. In today's competitive landscape, smart delivery isn't optional, it's essential. Invest in delivery scheduling, route optimisation and delivery tracking with customer notifications and to minimise the impact of rising costs. 
 

Contact us for a free 30-minute call with a fleet management expert to discover how Descartes can help your business navigate the predicted diesel price increases.