Freight, Haulage, Insights

Fuel Costs On The Rise Again As Opec Cuts Production

Haulier’s have been advised to expect rises of at least 8ppl on diesel for next week W/C 17/10/22. This is on the back of 2 consecutive rises whereby the costs of diesel as risen by 4ppl on average.

The forecasted increase in costs is being blamed on OPEC’s announcement that they will be cutting production by up to 2 million barrels per day. This amounts to more than 2% of total global demand.

RAC fuel spokesperson Simon Williams said: ‘Since OPEC+ and its allies agreed to reduce oil supply substantially we’ve seen the price of wholesale diesel go up by 9p a litre and petrol by 4p a litre. 

‘This has led to the average pump price of diesel going up by almost 4p a litre and petrol by nearly a penny. 

The Organisation of the Petroleum Exporting Countries (OPEC) are a group of 24 oil producing countries.

The OPEC bloc is nominally led by Saudi Arabia, the group’s largest oil producer, while Russia is the biggest player among the non-OPEC countries. Identified as a Cartel, OPEC controls production in line with global demand and often restricts supply to artificially raise the price of oil.

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