(24 Mar 2015, 12:22 pm)Chris wrote If the big 3 hedge their fuel, surely a drop in fuel prices today won't have any effect? The price they're paying today would have been 'hedged' 12 months ago when prices were higher.
Whilst fuel won't be an insignificant cost, I would have thought staff costs would make up a larger part of operators cost base.
All of their fuel for the next couple of years is purchased.
The link shows how that price has dropped by quite a few pence per litre over the last year or two and into the future.
They normally don't buy as much fuel in advance, as they have done (according to the info on the site), but have taken advantage of the lower prices and exchange rates, to buy ahead of schedule - getting it cheaper than in recent years.
4 or 5p per litre cheaper for our cars, makes a heck of a difference. Imagine paying 6p per litre less, for a fleet of buses? Massive savings - regardless of wages.
I have to say, my initial post was tongue in cheek.
Despite a lot of other everyday items falling (including food delivered by hauliers - who also hedge their fuel) and a possible period of deflation, I am not holding my breath that bus operators will drop theirs.