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505 – Fuel duty rise

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30 September 2010

HERE we go then. Fuel is on the rise from tomorrow. In the then Chancellor Alistair Darling’s Budget fuel duty received a 1p increase in April, and the same amount from October; and there’s a further 0.74p to go next April.

The current Chancellor, George Osborne – having looked in the cupboard stripped bare by the previous government’s cack-handed financial management – made no attempt to reverse this policy. Hardly surprising perhaps, but no joy for us businesses.

So if you haven’t filled up by tonight, the fuel will cost you extra. And the Treasury will pocket 58.19p on every litre (not forgetting the VAT too).

So what should be done? If you’re changing your business car, then it shouldn’t be too difficult to find a replacement that is more economical.

There’s more efficient driving that every driver can practice. While the average on my Audi A6 TDIe remains at 43mpg, I can often better the official figure of 53.3mpg on a long journey.

In fact, I’m enjoying the Audi more and more, relishing the relaxed nature of that low-torque diesel engine, the increasingly engineered feel of the gearchange and, of course, its beautifully crafted interior.

Anyway, a bit of careful and efficient driving can go a long way (see Blog 359 – Smarter driving makes business sense).

So, too, can a bit of planning. Neville Briggs, boss of software company CFC, has been exasperated at the way some companies have relaxed their control over this area.

“At the start of the recession, managers in many fleets introduced two dramatic policies – they stopped replacing cars and they started to actively manage journeys. Combined, these measures were very effective in minimising fleet expenditure,” explains Neville.

“However, there is obviously a limit to the amount of time that a non-replacement policy can be sustained – vehicles just start to wear out – and we have gradually seen fleets start to replace their oldest cars,” says Neville.

However, Neville continues, “What is more surprising to us is that a few companies are stopping active journey management. There are fleets within our customer base that reduced their overall mileage by more than a quarter with ease, dramatically cutting fuel and maintenance costs but some are letting this policy slip away.”

It’s good advice. Make your company car drivers more responsible for their journeys, think about diary planning and you can make some useful savings on your bottom line.

Business Car Manager: Editor’s Blog

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Ralph Morton

Ralph Morton

Ralph Morton is an award-winning journalist and the founder of Business Car Manager (now renamed Business Motoring). Ralph writes extensively about the car and van leasing industry as well as wider fleet and company car issues. A former editor of What Car?, Ralph is a vastly experienced writer and editor and has been writing about the automotive sector for over 35 years.

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