Getting rid of construction waste is essential for the conservation of the environment. Established construction companies have been relying on waste management services for a long time to remove waste from construction sites both responsibly and efficiently.
However, in recent times, the rising costs of construction waste management services have made it difficult for construction companies to manage their budgets. The primary reason behind increasing waste management costs is the recent fuel price hike.
Increasing Costs of Waste Management Services
Leading waste management companies that serve construction companies have increased their fees. Billy Fowles, the Managing Director of Fowles Skip Hire Woking, explains:
“Fuel price hike is directly increasing the fees of waste disposal services. Although we’re doing our best to make all our trips as economical as possible, further increase in fuel prices will make economic recovery difficult for trade industries who rely on our skip services.”
It’s clear that waste management companies are aware of the situation and want to ensure that they provide their services at affordable fees. But it seems unlikely that they will lower their fees unless fuel prices decrease.
The Reason Behind Increased Fuel Prices
The ban on red diesel in the UK is the primary reason why skip services are charging higher fees than ever before. Red diesel was primarily being used for off-road purposes in the UK, but now, the government has only allowed selected industries to use it for commercial needs.
The “supply and demand” rule has kicked in as more and more skip companies have to use fuel other than red diesel to run their vehicles.
Fuel is a “commodity”, and its prices are linked directly to several economic factors. During the past few months, the increasing inflation has pushed oil companies to sell fuel products at higher costs.
As fuel costs rise, waste management services are under pressure to optimize expenses. Bulk def delivery can significantly mitigate these challenges, ensuring efficient operations and cost savings in the face of increasing fuel costs in waste management services.
Global inflation is likely to push fuel prices higher in the UK. Other than that, the war between Russia and Ukraine is also impacting the fuel supply and its prices. Fuel prices are also expected to go higher as China is loosening the COVID policies and the driving season.
Increasing Demand For Waste Management Services
The post-pandemic construction boom has created an unprecedented demand for waste management services across the UK. Homeowners and companies wanted to ensure that their homes and workspaces were top-notch as life got back to normal, which caused a surge in demand for construction services.
As mentioned above, construction companies have to rely on waste management services to get rid of construction waste. It has been difficult for waste management companies to serve all their clients as demand for their services hasn’t diminished even in the autumn season.
Increased Distance To Landfills
Waste management companies rely on waste transfer stations to store waste before it’s recycled properly. Landfills across the UK are filling up faster than ever before, and this is another reason why waste removal services have to charge higher fees from their regular clients in the construction industry.
More and more waste removal companies have to spend more fuel on taking construction waste from construction sites to landfills. To stay profitable, waste removal services will have to increase their prices as their vehicles are consuming more fuel.
Effect On Environment
The UK government has imposed a strict ban on red diesel in its efforts to curb CO2 emissions. However, leading industries like the waste management industry still have to rely on fossil fuels to run their services.
The increased use of renewable energy instead of red diesel in the waste management industry won’t result in a “quick fix” for all the environmental issues that have been caused by red diesel. To reverse the bad effects on the environment, governments and scientists will have to collaborate on the creation of sustainable strategies that allow waste removal services to go “green.”
The fuel price hike in the UK and across the globe doesn’t seem likely to diminish in the near future. Experts suggest that waste removal services will have to increase their prices further if fuel prices keep on increasing.
An all-time high demand for skip hire services shows that waste removal companies will stay profitable amid the fuel price hike and will continue to play an important part in the conservation of the environment.