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It was only last year that many companies in the US and UK were forced to take drastic action when petrol prices took a sharp rise. Those companies that had transport operations felt the pressure more than most and it was common to see vehicle fleets reduced by more than half.
Now, after it was announced that petrol prices are set to rise again in the coming months, some businesses are on the edge and a large percentage of them are having to cut their fleet even further. This flux in prices is causing many companies a large amount of grief as they cannot accurately plan their profits and losses. “Each time we plan out our business for that quarter, petrol prices are put up and our costings go out of the window” says Barry Hemstone, MD of RDA Foods. Around 25% of all companies in the US that were heavily reliant on transport, went into administration last year, which is a figure many predict will be replicated this year as well.
For companies that rely so heavy on petrol prices to turn over a profit, the news of another rise has not been well received. “We cannot survive much longer” claims Judith Grey, MD of UK-based company Grey Kitchens. Our customers expect their furniture to be delivered to them, which is something that is becoming financially unviable for us now. Some companies such as the one mentioned above have taken up cheap van leasing as a way of bringing down their overall costs. Because they are not buying the vehicles outright, they can afford to spend more on petrol whilst maintaining their margins. Believe it or not Citroen van leasing has come out on top this year in terms of popularity, largely due to the high miles per gallon figures they offer. LDV van leasing has also been a strong choice as their reliability is thought to save companies large amounts of money in reduced maintenance costs.






