Is the worry of a post-Brexit hike in fuel prices keeping you up at night? For farmers, hauliers, and fleet operators, unpredictable fuel prices can play havoc with your cash flow. And with March 29th fast approaching, we know concern is growing about the immediate aftermath of the UK leaving the EU and how it will affect commodities such as diesel, kerosene, and gas oil.
This article explores how Brexit is likely to affect the fuel market and how you can potentially offset any risk.
Firstly, there is no guarantee that fuel prices will rise in the wake of Brexit, they may actually drop – although that is unlikely.
As with this whole Brexit saga, there is a lot of uncertainty about everything. Nobody really knows what’s going to happen.
History tells us, though, that fuel prices are volatile. So, with an unstable market it is likely to fluctuate a bit, but by how much and in what way depends on the outcome of Brexit come 29th March.
Diesel and Gas Oil prices are influenced by a whole host of different facets, the price of crude oil is one of them.
This year, the price of crude oil rose by $10 per barrel, subsequently forcing up the price of fuel.
Because crude oil is traded in dollars, if we see a drop in the value of the pound against the dollar post Brexit, then this could push prices up further.
And that’s where we believe Brexit is most likely to affect the marketplace, via currency fluctuations.
In the medium to short term following the outcome of Brexit, there is a good chance that the value of the pound will drop against the dollar, if the UK leaves without a deal, for example.
In a situation such as this, then yes, purchasing products such as diesel, gas oil, and kerosene etc. will inevitably be more expensive.
But don’t worry too much, it’s likely that the disruption will eventually calm down once the dust surrounding Brexit has settled.
However, that initial turbulent period still poses a dilemma to fuel buyers. So, what should you do?
There is a way of mitigating all this uncertainty, a way to balance your cash flow and protect your business against the potential ravages of a bumpy Brexit.
At Rix Petroleum, we can take the risk so you don’t have to.
Our bulk fuel forward purchase scheme is the perfect remedy for situations like Brexit. It enables fuel-dependent businesses to buy 5,000 litres or more at today’s price and fix it.
It’s more than just a forward purchase plan, though, we can work with businesses to build a bespoke plan that suits your individual requirements whether that be deferring payments to suit cash flow or selling the fuel back to us if you don’t need it.
As part of the scheme, we will also store it for free until October 31st 2019, and deliver it to you when you need it.
Bulk forward purchase takes the risk out of buying fuel while Brexit is playing out. It enables farmers, hauliers and fleet operators to purchase enough fuel to see them through to the end of October – through the worst of the disruption – and have it stored for free.
And with our buyback scheme, businesses won’t be stung for storage charges. If by October 31st, you have excess left, we’ll pay the market value for it on the day.
Protecting your business against any post-Brexit fuel price rise could not be easier. To speak to us about bulk forward purchase, get in touch on 0800 542 4207.