Understanding HVO fuel prices: what you need to know
As the UK continues to embrace sustainable fuel alternatives, Hydrotreated Vegetable Oil (HVO) fuel stands out for its environmental and efficiency benefits.
With its growing popularity, it’s important for consumers and businesses to understand the nuances of HVO fuel pricing when comparing prices to traditional diesel. This article delves deeper into the factors affecting the price of HVO in the UK, along with insights into current market trends and fuel duty implications.
What is HVO fuel?
HVO is a renewable diesel made by hydrotreating vegetable oils or animal fats. It’s renowned for its low-emission profile, offering significant environmental benefits such as reduced net greenhouse gas emissions and improved air quality.
HVO fuel is also compatible with the majority of modern diesel engines* and also benefits from having a longer shelf life when compared to standard diesel fuel.
What is the current price for HVO fuel?
Just like any fuel product in the UK, the HVO price per litre varies depending on several factors such as supply, demand, and production costs. These all play a part in the price you can expect to pay for HVO.
Unfortunately, this does mean that prices tend to fluctuate, so it’s advisable to check the latest rates to ensure you get an accurate quote based on your own requirements. Request a quote today by calling our HVO fuels team on 0330 123 1444.
What factors influence HVO fuel prices?
Feedstock costs – The price of vegetable oils and animal fats, the primary ingredients for HVO, can significantly affect HVO fuel prices.
Production and distribution costs – The specialised process of producing HVO and the associated transportation costs contribute to its final market price.
Government policies and incentives – Regulations and incentives aimed at promoting renewable fuels can impact HVO pricing.
Market demand and supply – The balance of demand and supply is a pivotal factor in determining HVO fuel prices.
Fuel duty considerations – Under the Hydrocarbon Oil Duties Act 1979, HVO is subject to the same excise duty rates as diesel. This parity in duty rates is an important factor for businesses and consumers to consider when evaluating the cost-effectiveness of HVO fuel.
HVO fuel price vs diesel
When comparing HVO fuel prices to traditional diesel, it’s important to note that HVO is generally more expensive. This may put off many individuals and organisations from making the switch; however, HVO fuel should be considered a more premium product that provides a number of desirable benefits.
- HVO provides a 90% reduction in net CO2 emissions, which vastly reduces your carbon footprint.
- Despite its higher upfront cost, HVO offers greater efficiency, which can lead to reduced engine maintenance and repair costs over time.
- Unlike standard diesel and other fossil-derived fuels which have a safe storage lifespan of 1-2 years, HVO can be stored for up to 10 years without degradation.
- There are no large upfront costs or modifications required when switching from fossil diesel to HVO, unlike from liquid fuels to electrification.
Why choose HVO fuel?
Opting for HVO fuel over diesel is a strategic choice for reducing the transportation sector’s impact on the environment. Although it’s cost per litre may be higher compared to traditional diesel, the long-term benefits of sustainability make it a worthwhile investment.
Discover how other companies have successfully transitioned to HVO fuel and the benefits they’re reaping by reading our HVO case studies which showcase some of our customers’ reasons for choosing HVO, and how we were able to offer bespoke support for their sustainability efforts.
Take action to meet your sustainability obligations
Whether you’ve been considering transitioning to a more sustainable fuel option or already using HVO fuel and looking for better prices, Crown Oil can help. As a premier HVO fuel supplier, we are dedicated to offering top-quality, environmentally friendly fuel solutions within the UK.
Contact our HVO fuel experts on 0330 123 1444 to explore how HVO fuel can benefit your business and align with your sustainability objectives. Together, we can pave the way to a greener, cleaner future.