Fuel prices likely to stay high

Unfortunately all forecasts are pointing towards high Diesel fuel prices continuing to stay within the $1.70 to $2.00 band out to as far as August 2022. A fundamental shortage of crude oil forecast to be produced into the medium term is at the heart of the problem. Adding to this shortage of crude is the impact that a invasion of the Ukraine would have on world oil supply if sanctions are placed on Russia. This time last year diesel was only $1.00ltr, compared to todays prices it’s a whopping >70% increase in running cost to most businesses, resulting in increases in freight rates across the entire industry to keep up with rising costs.