ONE of the highlights of the recent Budget was the reduction in the rate of fuel duty and cancellation of the fuel duty escalator.
At a time when costs are proving to be a challenge for many drivers and businesses, pressure had mounted on the Chancellor to provide some respite and he responded.
While the reduction in duty is something to be welcomed we still face soaring fuel prices because of the troubles in the Middle East and North Africa.
Fuel remains one of the biggest vehicle related costs and UK pump prices remain high. The upshot is that you should be managing fuel just as tightly now as you were pre-Budget, otherwise your costs will escalate.
As a starting point, this means getting a handle on what you are spending currently so that you can pinpoint areas for cost reduction.
Once you have this information, a simple way of reducing costs is to plan where you purchase it from.
The price at different fuel forecourts within an area can vary by several pence per litre, and so understanding which sites are providing good value and refuelling there, can make a significant difference to your annnual bill.
Looking ahead it seems pretty clear that the price of fuel will remain volatile, impacted by geopolitical events and changes to the supply, demand balance - and let's not forget that we are due two fuel duty increases in 2012.
Irrespective of the pump price, fuel costs are something that you should manage closely, and with record prices there has never been a better time to take a prudent approach.
Mike Waters is director of market insight at Arval, Europe's leading operational leasing and fuel management company.