Diesel prices are on the rise again

Since the middle of August diesel prices have been on the rise again and experts warn that they expect prices to continue rising for the next few months, seeing the diesel return to 170p per litre.  

In just 2 months fuel prices have jumped with diesel rising 15p per litre. According to RAC Fuel Watch, the UK average price for petrol on 4th October stands at around 156.93p, while diesel is 162.34p per litre. The peak price for diesel was previously 199.09p per litre in 2022.  

This latest increase is attributed to the rise in cost of crude oil. With the cost per barrel now close to $100 it could result in prices of 170p or more per litre of diesel this winter. While the price of petrol isn’t expected to rise much more, diesel is expected to continue to increase. A seasonal uptick in demand from the transportation sector in summer 2023, together with an increase in manufacturing and trade activities, has put upward pressure on prices and with OPEC, the oil-producing group, restricting production, prices will only go higher.   

The solution lies in route optimisation

In the face of rising diesel prices, utilising route optimisation and delivery planning software to optimise routes based on parameters that reduce mileage and delivery costs becomes even more imperative. 

Investing in a delivery route planning solution is a smart decision with increasing fuel costs as it will help: 

• Reduce fuel usage – calculate and drive the most efficient routes for your deliveries, based on the latest traffic data and delivery priorities while avoiding congestion. 
• Improve resource utilisation – maximising your available resources, and delivering more in each delivery window, minimises unnecessary trips by reviewing all your deliveries and not just those scheduled for the next day. 
• Increase first time in full deliveries – using customer notifications and delivery tracking helps ensure the customer is available to receive the delivery and reduces the number of repeat deliveries. 
• Reduce related costs - Optimised routes will have the added bonus of reducing wear and tear on vehicles and reduce maintenance costs. 
• Deliver long-term savings and benefits - While fuel prices will fluctuate, the long-term benefits of using a delivery planning solution will reduce operational costs, improve efficiency and enhance customer satisfaction. This can outweigh the impact of fuel price increases. 

Contact us for a free 30-minute call with a delivery planning expert to discover how Descartes can help your business weather the diesel price increases.