BLTOA Letter to Blackpool Council Regards Fuel Price Increases

Submitted 28/02/2022

Request for an immediate implementation of a Fuel Surcharge

References:

UK Government Prices of Road Fuels. www.gov.uk/government/statistical-data-sets/oil-and-petroleum-products-monthly-statistics. Meeting held by BLTOA & Council 23/02/2022.

BLTOA are requesting an immediate implementation of a Fuel Surcharge due to the on-going price increases in the Oil & Gas Market. The following facts and figures will outline the current situation and the surcharges being requested.

1. In September 2021 = Litre price for diesel = £1.36. The recent Taxi fare increase was implemented in October 2021, but was submitted in July 2021.

2. By Jan 2022 = Litre Price = £1.48. That’s a 12p increase = 80 litres of fuel purchased in an average week = £9.60 extra costs in fuel per week.

3. In Feb 2022 = Litre Price = £1.50. That’s a 14p increase = 80 litres of fuel purchased in an average week = £11.20 = £44.80 extra a month.

Due to the crisis in Ukraine, fuel prices are being predicted to go above £1.70 a litre within weeks, this will see extra costs on a Taxi drivers fuel of approximately £27 a week (£108 a month). The medium

to long term is expected to see fuel prices up to the £2.00 a litre and more, the market will compensate for the drop in Oil supplies from the countries linked to the Ukraine crisis, but that could be in 2023.

The following details the immediate requirements for a fuel surcharge to mitigate against the unaffordable extra costs currently being applied on the Taxi trade, and assist the trade to sustain a living and pay their bills during this cost-of-living crisis. Obviously, the longer-term approach will be a Taxi meter fare increase:

a. £1.50 a litre of diesel & £1.48 a litre of unleaded – With immediate effect 1 extra surcharge of 30p to be added for each journey.

b. £1.65 a litre = 2 extras added for the surcharge.

c. £1.80 a litre = 3 extras added for the surcharge.

d. £1.95 a litre = 4 extras added for the surcharge.

We are aware that fuel surcharges of this nature have been agreed by the Council in the past. Our records show that something along these lines was agreed in 2008 and the details were shown on fare plate until 2012, when the relative paragraph was removed from fare plates. Due perhaps to the passage of time since then we are not aware of the reason for it being removed.

The 2008 agreement stated that if fuel prices for diesel exceed the agreed figure at the Shell Garage on Talbot Road (Shell North) then the surcharge would apply. Our proposal is that the surcharge ‘trigger’ should be the Dept for Transport website mentioned. If however you think that the Shell North option is preferable, we would accept that.

Please respond to the above request at your earliest opportunity, the matter in question is urgent, and BLTOA request the council to apply its known ability to act quickly and mitigate an issue that will only become worse as time goes by.