FuelClub Discount

A ship industry proposal to switch the world’s merchant fleet to diesel fuel will send oil soaring through the $150-a-barrel mark, stoking fears of higher petrol prices and rampant inflation, an environmental technology group said on Thursday.

It will mean even higher prices at British petrol pumps, with the GBP10 gallon a distinct possibility as demand begins to outstrip supply. Consumers will also feel the knock-on effect of higher food and energy bills.

Shipping circles are debating how to reduce harmful sulphur dioxide emissions, which cause acid rain, respiratory illnesses and heart problems.

Part of the industry, led by the independent tanker owners’ organisation Intertanko, wants a total ban on high-sulphur marine fuels in favour of lower sulphur diesel fuels.

The International Maritime Organization (IMO), the UN agency responsible for preventing pollution from ships, will consider the controversial fuel proposal when its Marine Environment Protection Committee (MEPC) meets in London Monday (31 March).

The switch to diesel at sea would be equivalent to one and a half times the annual automotive diesel consumption in Europe.
(more…)

In time-honoured fashion, the price of road fuel is soaring just ahead of a holiday weekend. The oil industry rarely misses an opportunity to deliver itself a public relations shot in the foot but this one is curious because it is the price of diesel that is soaring, more than petrol, and it is a systemic problem. We know the oil price has been high, peaking last week at $111 (£55.27) per barrel, and pump prices have risen in tandem but since the beginning of January the cost of diesel has risen at twice the rate of petrol. There is a shortage of diesel in Europe - some petrol stations have actually run dry - and the problem is there are just too many diesel cars.

The average UK retail price of petrol has risen from 103p per litre to 106.8p per litre since the new year but diesel has raced ahead from 108p to 114.3p. Normally, diesel drivers pay a smallish premium of 2p to 4p per litre over petrolheads but it has now escalated to 7.5p as supermarkets scramble for scarce cargoes. This may be a sign that a long-running shortage of diesel in Europe is getting worse. A cycle of refinery maintenance shutdowns and an unexpected cold snap late in the winter has coincided to create a temporary shortage. In search of extra fuel, importers have been buying cargoes of diesel in America for shipment to Europe.
(more…)