Fuel costs back in focus as diesel hits record high
The average price of diesel in the UK has reached the highest level ever recorded, adding further strain to scaffolding and access businesses already absorbing significant fuel cost increases.
The average price of a litre of diesel stood at 199.18p today (Monday 28th September), according to figures compiled by the RAC, passing the previous record of 199.09p set in June 2022 in the wake of Russia's invasion of Ukraine. Petrol has also continued to climb, reaching an average of 174.13p a litre in September, 41p higher than at the start of the Iran war, which has disrupted supply chains and driven up global oil prices.
For scaffolding businesses, that record price lands directly on the operating costs of the business. Vehicle fleets, material deliveries and site visits are not optional extras, and the mileage involved in getting scaffolders, tube, fittings and boards to site cannot simply be reduced without affecting service. Every litre of the increase is felt across the fleet, every week.
What NASC members told us
The record price comes four months after a NASC industry survey set out just how heavily fuel costs were already weighing on the sector.
That survey found almost half of respondents (49.2%) had seen fuel cost increases of more than 20% over the course of the year, with a further 44% reporting rises of between 11% and 20%. Respondents rated the impact on their businesses at an average of 7.2 out of 10, and nearly 94% identified transport and vehicle costs as the area most affected. More than half also pointed to the effect on profit margins and site visits.
Critically, most businesses were not passing those costs on. More than half of respondents (57.1%) said they had absorbed the increases entirely, with only 1.6% passing them on in full. Instead, firms were optimising delivery routes, reducing site visits where possible and reviewing their estimating and pricing processes in order to stay competitive.
Members were also clear about what they expected to come next, rating their concern about further increases at an average of 7.9 out of 10, with more than 30% selecting the highest possible rating. Today’s figures suggest that concern was well founded.
Pressure ahead of the Budget
Speaking on BBC Radio 4's PM programme this afternoon from the Labour Party conference, NASC Group CEO Clive Dickin said the budget on 28th October would be critical for businesses in the sector.
Responding to the survey findings in June, Clive urged Government to consider what practical measures could provide relief for construction and access businesses, whether through fuel-related support, targeted tax measures or other initiatives that help firms remain resilient, invest in their workforce and continue to support the UK's growth agenda.
With diesel now at a record high, that case is now stronger than ever.
