Weekly Fuel Update
1st March 2022
Price increases accelerate
Prices for all major Orion fuel commodities have risen by approximately 10% in the past week, in line with the percentage growth in WTI Futures markets. Both Orion and WTI prices are now around 40% higher than May 2021 (see chart); and there is inevitably an increase in volatility in the futures market. It is safe to conclude that in the short term, ceteris paribus, there is no reason to believe that the farm gate prices will decrease.
Events in Eastern Europe have inevitably led to increased demand and as a result all suppliers have warned that Lead times are extending - they are currently 7-10 working days from order, but there remains variation by supplier and location.
Management of Fuel Orders. We would like to inform Members that with effect from 8th March, the management of fuel ordering and all associated tasks, will be brought back in-house. For the last 9 months, these roles have been out-sourced to Adam Donaldson via his company, Demand Economics and we would like to thank Adam for all his efforts in this respect. We have appointed a new fuels co-ordinator and further details will follow in due course. John Norton – General Manager.
Government changes to rebated diesel and biofuels are taking effect from 1 April 2022. You can familiarise yourself with the changes and new regulations by clicking the button: