RAM Tracking comments on Spring Statement

Fleets’ fuel bills to fall by more than £500 this year thanks to fuel duty reduction Nick McClellan, managing director at RAM Tracking, a leading vehicle tracking, dash cam and fleet management company, said:

“The cut in fuel duties by 5p per litre announced in today’s spring statement is welcome news and could amount to saving of around £87[1] per vehicle per year or over £600 per year for an SME fleet of seven vehicles.
“Fuel duty adds almost 58p per litre to the price of fuel and with prices in the UK having recently hitting a new record high, with the average cost of petrol at £1.65 a litre and diesel £1.76 a litre [2], this reduction is badly needed for drivers and is unsustainable for many small and medium sized business.”

Fuel duty has been frozen for the last 11 years, but with oil prices spiralling – the price of a litre of diesel has increased by 21p since the start of the year3 – the reduction in fuel duty is most welcome for businesses. According to the AA, the 5p fuel duty cut equates to a saving of £2.75 for a typical 55 litre car tank.

Nick also suggested that making some small changes can help drivers to gain further fuel savings.

He added: “At a time of high costs of living and rising energy prices, it’s worth changing driver behaviour to minimise burning precious fuel, such as avoid idling for too long, keeping tyres pumped up, not going too fast or too slow, avoiding braking aggressively and better route optimisation.”

RAM Tracking’s services are designed to monitor and optimise the areas that help drivers – and businesses – save fuel.

[1] The average diesel van travels 13,343 each year. (https://bit.ly/3iqEbZ0). The average vehicle age on RAM’s fleet is four years. Saving is based on a four-year old diesel Ford Transit that averages 35 mpg – that’s 381.23 gallons (4.55 litre per gallon) = 1,734.59 litres of diesel use or £3,104.92 in fuel per vehicle per year.
Fuel duty accounts for 57.95 pence per litre. Average RAM fleet is 7 vehicles therefore £607.10 saving per year on 5p reduction in Fuel Duty
[2] RAC Fuel Watch on 21 March 2022 – https://bit.ly/3L2IDcI
[3] National Statistics, Weekly road fuel prices – https://bit.ly/3ts5Sah

By Alison