It is reported that UK retailers of fuel, led predominantly by the supermarket retailers, are currently earning an average of 18p on a litre of diesel, which is more than double the long term average of 8p and, despite the current reductions in the wholesale price of fuel, they are not imminently minded to reduce the forecourt prices to reduce that margin.
In related news, UK car manufacturers are likely to miss the Government target for electric vehicle production in 2024. The Society of Motor Manufacturers and traders predicts that the share of the UK car market held by pure battery electric cars will be just 19.8%. This falls short of the goal the Government set out, which requires at least 22% of new cars and 10% of new vans to be zero-emission by 2024.
Will the fuel retailers action force more people to consider swtiching to electric vehicles? If so, would this potential increase in demand help manufacturers meet the Government targets for new vehicle sales?
I feel the answer to this is no, not at the moment, as there are too many uncertainties around the whole electric arena; infrastructure, durability and battery life. However there is clearly a move to meet the UK’s 2030 obligations under the various climate initiatives but this to me is not the point at which it switches.
The next step
If you would like to discuss your motoring/fleet requirements, please contact Brian Carey on b.carey@uhy-uk.com your local UHY representative to obtain the best tax advice within this area.
