Rising diesel prices a concern

Victorian Transport Association CEO, Philip Lovel AM, has warned that rising diesel prices are once again becoming a concern for transport operators.

“The average price for diesel in February 2011 was 136.76 cents per litre (cpl), compared to 124.19 cpl in March 2010 – an increase of 12.57 cpl or just over 10% in 12 months,” explained Mr Lovel.

He also advised transport operators to monitor fuel prices on a daily basis, set up a fuel levy that is agreed upon with customers, and establish specific fuel levies across different fleet and customer segments.

“We have all had experience with fluctuating fuel prices and the big effect this has on cash flow. Transport operators rarely recover it back from their customers fast enough, and this has resulted in many transport companies going bankrupt. Expect this trend to escalate unless transport companies manage these fluctuations well in their rates and fuel levies.

“The current diesel price as at 1 March 2011 has hit 142.41 cpl, so we are now starting to see a return to very high fuel prices.

“Don’t just sit back and think it will go away, it won’t,” he warned.

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