2022 was a record breaking year to forget for most Britons, as petrol prices skyrocketed to heights never before seen, however, you may be pleased to know that prices have fallen, and seem to be steadying.
Crude oil is one of the primary raw materials used in the production of petrol. Therefore, the price of crude oil is a significant factor in determining the price of petrol in the UK and other countries around the world.
The process of refining crude oil into petrol involves several steps, including distillation, cracking, and blending, all of which require energy and other resources. As a result, the cost of producing petrol is closely tied to the price of crude oil.
When the price of crude oil increases, the cost of producing petrol also increases, which leads to higher petrol prices for consumers. Conversely, when the price of crude oil decreases, the cost of producing petrol decreases, and petrol prices may also go down.
It's worth noting that the price of petrol in the UK is also influenced by a range of other factors, including taxes, distribution costs, and market competition. However, the cost of crude oil is undoubtedly one of the most critical factors affecting petrol prices.
In Spring/Summer of 2022, the price of crude oil rose exponentially due to a combination of geopolitical and socio economic factors.
The ongoing war between Russia and Ukraine had the biggest impact on the cost of crude oil due to the fact a large proportion of the world’s oil comes from this region. Petrol and diesel fuel prices began to swell, reaching record heights in July, only compounding an already uncomfortable financial situation for British car owners.
An issue of such fluctuating complexity and sensitivity has provided many wider issues, with Russia being the world's second largest oil producer and one of the sources Great Britain gets its oil from.
Sanctions on Russian trade and recent oil embargos agreed upon by UK and EU leaders regarding shipping, insurance and sale all drove fuel prices to new record levels.
The wholesale price of Brent crude oil (the international benchmark of crude oil cost) jumped to $123, inevitably soaring petrol prices in Britain to record heights of 191.3 pence per litre in July.
With the world constantly adjusting to economical factors, the price of crude oil began to decline toward the latter stages of last year, and except a few sharp small rises, has continued to do so.
At the time of writing, Brent crude oil costs $75.26, meaning a 34% price decrease compared to last year.
British petrol currently sits at 146.63 pence per litre, a decrease of almost 50 pence since the peak of the fuel crisis last summer.
Telematics systems gather GPS tracking and vehicle specific data to transfer via means including- cellular network, satellite communication, mobile data, and GPRS to a central server. The data collated is then analysed and transcribed into specific metrics for the site/plant fleet manager to interpret via our Fleetsmart app or website.
Fleetsmart's vehicle trackers offer features to monitor driving style, which is crucial for reducing fuel costs. Idle engines burn 1.077 to 2.13 ounces of fuel per minute, while harsh acceleration and braking lead to faster fuel consumption.
With advanced trackers, fleets can identify inefficient driving and provide extra training to reduce heavy braking and long idling.
Energy Saving Trust suggests that trackers can reduce operating costs by 10% and fuel use by 15% annually.
Fleetsmart's Advanced Mapping feature helps drivers plan the quickest and most efficient routes, avoiding unnecessary fuel consumption and saving time.
It's particularly helpful in diverting drivers away from traffic jams or accidents. This feature also ensures drivers arrive at their destination on time, improving reliability.
Fleetsmart's advanced van tracking devices provide a comprehensive view of your fleet, including driver information, location, and activity in real-time.
This enables you to optimise vehicle utilisation by assigning jobs to the nearest available driver, reducing unnecessary fuel consumption, and ultimately saving on fuel costs.
It’s proven that Telematics can help boost productivity, employee efficiency and fleet operations as a whole; all the while reducing idling, hazardous driver behaviour, fuel consumption and vehicle maintenance costs.
Fleetsmart offer a range of the latest Telematics technology at extremely cost effective prices with scalable options starting from just £6.95 per vehicle per month. With a clear multitude of performance enhancing and money saving reasons to implement telematics to your vehicles, now might be the time to upgrade your fleet.