Price hike fears put in perspective

Following fears that red diesel prices are to increase Ancasta, the yacht broking company, have compiled data on the useage of the fuel made by sailors and motorboat users.

The average boat engine has 60 hours use per annum. 
An average 38 ft twin engined motorboat runs on full speed at 45 litres per engine, using 90 litres per hour for both engines.
If red diesel is doubled, with VAT, the added cost for an average use (60 hours per year) is £2,601.  For a sailboat, it’s nearer £216 per annum. 

Ancasta has produced its engine usage figures derived from over 22 years of experience of brokerage.  Sales Director Ashley Overton says “We always calculate that if a boat is five years old, it will have 500 or less engine hours.  In reality, looking at our records, the figure is nearer 60 hours per annum.” 

“Looking at the figures as a worst case,” continues Ashley, “this increase is not particularly significant when compared to increases in other costs such as mooring, provisioning, annual maintenance and even the overall purchase price.  I don’t think anyone is not going to buy or use their dream boat, which could have cost around £150,000, because of an increase of around £2,000 per annum.” 

In addition, Ancasta points out that as well as a proposed lengthy transition period before the tax on red diesel is increased, it is not even clear at this stage what level of tax will be imposed. Most of the data issued has been looking at the worst case scenario which effectively doubles the price.  Nevertheless, the European Commission has left an option for tax on marine leisure fuel to be increased, but not necessarily doubled.

“While we agree that it’s a blow – any cost increase is – it does have to be put into perspective.   We’ve had a really good year, and I can’t see potential fuel increases making any real difference to our projected figures for 2007.  What’s more important is to keep offering new and innovative boats, and excellent brokerage service so people can have the boat of their dreams and make the most of their time on the water” concludes Ashley.