Small businesses look set to benefit as, according to the RAC, there is a “very good chance” petrol prices could fall to £1 per litre, or even below. The average petrol price is currently £1.07 per litre, but some supermarkets have already started to slash their prices to below £1 a litre in an attempt to lure in Christmas shoppers.
Lower Operating Costs
According to past figures from the RAC, you would have to go back the summer of 2009 to find the last time that petrol fell below £1. Analysts point to a sharp fall in crude oil prices since last summer as the primary factor behind the fall. Brent Crude is now trading at its lowest point since 2004 at around $36.17 per barrel. While a decrease in the price of petrol generally noted as a positive for the consumer, as it boosts disposable income and purchasing power, it’s also good news for businesses too.
As you can expect, fuel and heating are large costs for businesses just as they are for consumers. From shipping expenses to the cost of the raw materials, low fuel prices can play a big part in helping business owners to significantly reduce their overall expenses. When you consider that it costs about a £1 a minute to operate a heavy goods vehicle, any reduction in fuel prices will have a dramatic impact.
A Chance to Reinvest
This access to new funds also means it could be the perfect time to reinvest in your business. How you decide to do this will be highly dependent on the type of company you run, but one way all businesses can benefit is from increased employee training. Not only will this increase productivity in the workplace, but it will also increase talent retention. When staff feel that their employers cares about their personal development, they have better chance of showing loyalty and dedication to their work.
Similarly, if your business makes heavy use of its fleet, now could be the opportune time to invest in some additional vehicles. Take a look here to see some of the options available to you. Not only will you be making use of your increasing cash flow, but since the price of petrol is down you’ll feel the benefits of your actions for much longer than usual too.