Fuel commission increase kept to a minimum

7Y has reluctantly decided to increase the commission charged to fuel purchasers from 0.2ppl to 0.3ppl, and to also remove the £20.00 cap for orders in excess of 10000 litres.

We have not changed our commission charges for a number of years. When gas oil was 20ppl, our commission was the equivalent of 1%. With the increase in the cost of gas oil to more than 65ppl, our commission has dropped to 0.3%. The increase in commission brings us back up to around 0.5%, still 50% lower than when gas oil was 20ppl.

This increase is necessary for a number of reasons:

The flow of cash through the business, and resultant costs, has increased
significantly

Credit checking costs have increased

Suppliers have tightened credit risk and limits significantly

A more robust agency agreement needs to be implemented; this agency agreement will have an associated cost which needs to be recovered.

We have tried to keep the increase to a minimum although our transactional costs have risen significantly.

Call Di now for a fuel price on 01568 619116

Tue 5th Aug 2008