Fuel Surcharge April 2022

Welch's Transport Ltd = 20.93%

Calculated from the price of our last bulk bunkered fuel delivery at any of our sites, minus our cost base price of fuel at £0.86, multiplied by 30% as the is the percentage of our overall cost base which fuel is attributed to. 

Shipstar eCommerce Fulfilment = 10.50-22.00%

For customers using our eCommerce fulfilment service, the fuel surcharge is charged against the service provider you use:

A Message from our Commercial & Operational Director - Chris Welch:

"Given the current problems in Eastern Europe the price of oil has increased sharply and our final buying price in February was 118.30 equating to a fuel surcharge of 9.69% for March.

We purchased fuel the first week in March at £1.35 per litre and, whilst expensive, fuel was available from all of our nominated suppliers. Week two, only one supplier had fuel and they robbed us blind, charging £1.70 per litre (equivalent to over £2 per litre including VAT at the pumps on the high street). Week three none of the suppliers were taking orders and we started to issue fuel cards to the vehicles in readiness for having to draw from the retail fuel network. Week four only one supplier had fuel and we ordered at £1.56 per litre for delivery this week. This includes last week’s 5p fuel duty reduction and is broadly equivalent to current high street pump price when VAT is added.

Whilst prices at the high street filling stations have spiralled, supply hasn’t been an issue whereas in the wholesale market, it has. There has obviously been some shortage of supply as we have turned away a relatively small amount of Russian oil and its almost as if, following the ‘fuel crises’ of last October, fuel distributors have been leaned on to prioritise the retail market over the wholesale, spot hire market, which is where all the pain is currently being felt.

I would like to say that the market will shortly stabilise, and that prices will fall but I’m not seeing it, certainly in the short-term. 

Thank you for your understanding and continued Business

Chris Welch"