George Osborne disappoints the fuel industry over rise of fuel prices

When the budget was released by Chancellor George Osborne it still remained a challenging task to source any industry that was happy with what was been put in place, especially the fuel industry. It has been reported that George Osborne will be going ahead with plans to increase diesel fuel duty to 3.01p/litre.

RHA chief executive Geoff Dunning commented on the Budget proposal saying: “The Chancellor’s decision to go ahead with this rise is not only disappointing, the reason behind it is hard to understand.

“In the last Budget, the Chancellor seemingly understood the need to stop driving up fuel taxes and he actually cut duty. This time he seems to have done a complete U-turn. We are struggling to achieve any growth and pump prices have reached record highs – yet he is driving fuel costs even higher.

“Diesel fuel is now the most expensive it has ever been – the RHA’s weekly fuel price survey last week hit an all-time record high – and yet the Chancellor will be driving costs up by another £1,200 a year for a large trucks – costs that hauliers must now set about trying to recover from their hard-pressed customers.

“But it is not just the haulage industry that can’t afford this increase; neither can the industry’s customers, nor the UK economy. We have shown the Chancellor how he can use a fuel duty cut to stimulate growth at no cost to the Treasury. We are extremely disappointed that he has chosen to ignore this research and has taken the opposite path.

“Mr Osborne has taken a wrong turning and is driving us in the wrong direction on fuel duty. His decision will cost jobs, especially in the more remote parts of the UK.”

There is no question as to why Mr Dunning is disappointed in the decision made by the Chancellor and as a response to his ‘poor’ decision making there is a potential strike that could see a repeated occurrence of endless queues at petrol stations as customers once again become panic stricken.

However, it is not only Mr Dunning who has expressed his anger towards the new policy; Freight Transport Association’s chief economist Simon Chapman has accused the Chancellor of having “squandered a very real opportunity to support UK industry, jobs and economic recovery, by his Budget policy on fuel duty.

“Mr Osborne has lost an opportunity to benefit every household in the UK and he must be persuaded to change his policy. FTA cannot accept this situation and will join with colleagues in the FairFuelUK Campaign with the intention of reversing his decision.

“In addition, the much heralded Fair Fuel Stabiliser has emerged as a damp squib. All it does is to formulise fuel duty increase above inflation if world oil prices fall below $75 per barrel. At the very least, what he should have done was to commit to freezing fuel duty when world oil prices were above $100 per barrel.”

FairFuelUK is actively supported by RAC, FTA, RHA and The Fuelcard Company and is one of many organisations that have called for the policy to be scrapped. They are urging UK residents, haulage businesses, self employed drivers and businesses to sign their petition in hop that the Chancellor will reverse his decision. Quentin Wilson, national spokesperson for FairFuelUK commented: “The government has turned its back on families and businesses all across the country. Three quarters of the electorate who want lower fuel prices. It ignores the threat of rising global oil prices – even the Saudis are trying to pull down the price of crude...This is a mortal wound for this government’s policies and its credibility.”

The campaign group has also slammed Mr Osborne for ignoring the Centre for Economics and Business Research (CEBR) report, with the first statement featured on their website saying: “The Chancellor ignored the highly respected Centre for Economics and Business Research (CEBR) report that has shown that even a modest cut in fuel duty of 2.5 pence per litre would create a staggering 175,000 new jobs and would on its own, boost GDP by 0.33 percent.”

Mr Osborne had also announced that vehicle excise duty (VED) – road tax – will rise in line with inflation. However, this will be frozen for lorry operators and the government are considering plans to allow drivers to spread the cost of buying their tax disc over several months paying by direct debit.

The latest figures for fuel safety is released

A new Downstream Incident Data Report (DIDR) commissioned by the Gas Safety Trust has been released in which it sets out to analyse accidental carbon monoxide (CO) poisoning incidents in Great Britain associated with the use of mains natural gas and piped LPG in the households. The report aims to increase safety, target investment on carbon monoxide incident prevention and to identify additional research work and has identified oil as the safest form of oil suitable for domestic use.

Gas Safety Trust Board Chair, Chris Bielby said: “The Gas Safety Trust is pleased to fund this report. We strongly believe that the information and data contained within it to be crucial to the further reduction in fatalities or serious injuries from accidental carbon monoxide exposure in the home environment.”

The DIDR reviewed CO poisoning incidents in Great Britain between 1st July 2010 and 30th June 2011, in which it was discovered that there were no reported fatalities caused by CO in homes using oil and just three non-fatal incidents, the lowest of all the fuel types.

The data on oil-related CO incidents, supplied by OFTEC shows that oil-fired systems are less likely to release dangerous carbon monoxide (solid fuel had the highest number of reported CO poisoning incidents) than natural gas making oil the safest choice.

Jeremy Hawksley, Director General of OFTEC, said: “Every carbon monoxide poisoning fatality is a tragedy, so it’s reassuring for oil customers to know that they’re using the safest fuel for their heating and cooking needs. Oil-fired systems are less likely to release dangerous carbon monoxide than natural gas, LPG or solid fuels, and regular servicing by an OFTEC registered technician will help minimise still further the remote risk of an incident occurring.

“While oil is a very safe fuel, it would be wrong to be complacent. We always urge homeowners to take sensible precautions and are very pleased to contribute to this report, which is part of our work to raise awareness of the risks posed by carbon monoxide.” 

The full DIDR Report is available to view online here.

New PAYG heating oil scheme in operation

With the price of living on the rise, households across the UK have been put under immense pressure to budget for necessities such as heating oil. Although shopping around for the best deal provides a welcoming way of saving money and reducing stress it is often found that buying in bulk is the only way to achieve large savings, something that goes beyond the means of households.

However, in a bid to help households to keep track of how much they have spent and budget for their home heating oil, without resorting to using 20 litre emergency oil drums, a new pilot Pay-As-You-Go (PAYG) scheme for home heating oil has been introduced in Northern Ireland (NI), something the Consumer Council has welcomed.

 The new scheme will operate in 20 homes in Dungannon, Camlough and Newcastle and allow these homes to buy the amount of oil they need, which is then released from the consumer's oil tank.

Antoinette McKeown, Chief Executive of the Consumer Council says: “Given Northern Ireland's dependence on home heating oil the spiralling cost of this form of energy, this pilot is welcomed in bringing a focus to finding ways to help households pay for home heating oil.  The Consumer Council is aware that many households in NI choose to purchase emergency 20 litre oil drums, yet someone reliant on these drums will spend on average £800 more annually than someone who buys approximately five and a half, 500 litre fills.” 

However, the Consumer Council have also become weary of the new scheme, expressing their concern over the unfortunate event of oil theft from a tank; “Whilst the Consumer Council welcomes the new PAYG scheme, we do have concerns around ownership and liability in the event of theft of oil from the tank.  However, we await with interest the outcome of this pilot scheme and hope that it proves beneficial for PAYG home heating oil users. 

 “With forty four per cent of households in fuel poverty in NI - and rising energy prices - it is important that the NI Executive tackles issues of fuel poverty and affordable energy prices for households in NI.   The PAYG scheme for home heating oil is a step towards this.  However, other alternatives such the radical reduction in our reliance on home heating oil and area based energy efficiency programmes must be seen as key strategic priorities to reduce the cost of energy and fuel poverty in NI.”

Fuel tank owners need to comply with regulations when stocking up on diesel

According to new reports bunded diesel tank and small fuel container owners are disregarding the regulations relating to the safe storage of fuels when stocking up on diesel in case the potential threat of a fuel tanker strike commences.

In response to potential industrial action among many of the UK’s fuel delivery tanker drivers we advise you to take precautions when stocking up your tanks and be mindful of the fuel regulations. If you do not adhere to the regulations, businesses and commercial diesel fuel tank owners could be committing a criminal offence.

The storage of diesel in England falls under the legislation of The Control of Pollution (Oil Storage) (England) Regulations 2001, which establishes the standards for the storage of all types of oil in which; failure to comply is a criminal offence. For instance you will not be complying with the regulations if you store fuel externally in uncontained, non-bunded IBCs, or by attaching a gravity fed hose to a heating oil tank.

To assist you further with the gathering of necessary data we at RPM Fuels and Tanks have a detailed article on the Environment Agency Pollution Prevention Guidelines, which outlines all the precautions and actions you must take to ensure oil storage safety.

Although you may be feeling pressure to stock up on as much diesel as possible before any possible strike gets underway it’s imperative that you do this as safely as possible, not only for your own benefit but also for the environment too.

For the safe storage of smaller containers we recommend owners to use a bunded spill pallet to ensure all oil is kept safe and the possibility of a spill is reduced. Under the Environment Agency Pollution Prevention Guidelines, bunded diesel tank owners will benefit from guidance that covers installation of new or replacement tanks, compliance with legal requirements for existing tanks and current good practice.

Following these guidelines will help you comply with the requirements of the Control of Pollution (Oil Storage) (England) Regulations 2001 (OSR England) and the Water Environment (Oil Storage) (Scotland) Regulations 2006.

If you cause pollution or allow it to occur, you may be committing a criminal offence.

Warning: Rise in rural oil thefts

Following a rise in oil thefts across East Yorkshire, rural businesses are being warned to stay alert of any potential criminal activity.

According to a recent report the raiders are targeting isolated premises for their heating oil and diesel. The motive behind the a criminal offence is said to be the continuing rise in price for crude oil and see properties in the countryside as an easy target.

Due to the rising prices of oil, it is now considered to be a valuable commodity. Humberside Police and NFU Mutual, a leading rural insurer, have been reporting a steady rise in oil thefts. It has been reported that oil thieves are using online technology such as Google Maps as a sophisticated means to spot potential targets.

However, according to the director of the petroleum division, Duncan Lambert there are precautions oil owners can take and put in place to reduce the risk of falling victim of the crime, saying:  "Heating oil is a valuable commodity and all too often it is targeted by thieves wanting it for their own use or to sell on the black market.

"The situation is not helped by the fact many homes and businesses using heating oil are in isolated areas where thieves can go unnoticed for long periods of time.

"But, like most criminals, they are opportunists and if people make life difficult for them they are much more likely to abandon their attempt rather than risk getting caught."

There are a number of simple and cost effective ways of ensuring your oil tank and its contents is kept secure. Mr Lambert continued: "Anyone who has an oil tank with a lid on it must make sure it is padlocked.

"Also check the tank's gauge on a regular basis – it is difficult to know if oil has gone missing if people don't know how much oil is in there in the first place.

"Remote electronic gauges are available which sound an alarm if a tank's oil level suddenly drops, or falls below a quarter full.

"The gauges are placed in the house so are useful in terms of alerting a possible burglary, leak or just when to order the next delivery."

Other ways to protect oil tanks and products that can be used as a deterrent include CCTV systems to fitting security lights. He said: "This may sound expensive, but farms and other businesses often store thousands of pounds of fuel on site so they are really a cost effective form of security.

"People should do everything they can to make sure it doesn't look like a tank from above.

"Grow trees around it, camouflage it or turn it into a garden feature, anything that will help to minimise the chances of being a victim of this crime.

"However, people should make sure they don't block access to the tank or block the tank's vent or breather, as this could lead to damage."