Currently, the cost of fuel is one of the most discussed topics between workmates and friends and family. Not only that, but all over the media, we’re seeing reports of this increase impacting consumers worldwide.
While we can see the increase in the price at the pump, what is driving these cost increases?
Three core factors are impacting the price we pay:
- Foreign Exchange Rates
As we pay for our imported refined products in the United States Dollar (USD), the weakening New Zealand Dollar (NZD) means that we have to pay more for the same volume of product.
- The cost of the product is increasing
Refined petrol, diesel and crude oil, and the shipping costs to New Zealand are all increasing. However, there are also global impacts from the conflict in Ukraine.
- Emissions Trading Schemes (ETS)
The price of NZ ETS Units (i.e., the cost of carbon) has continued to increase over the last year materially.
What does it mean for your business?
If you have a vehicle or fleet with a Fuel Card, you should check your daily or monthly spend limits. These may need to be increased to ensure you or your team can continue to buy the right volume of fuel for your business.
Reach out to your fuel provider now; you will find their contact details on your monthly invoice.