Transport / NorthLink fuel costs this year expected to rise sharply to £25m
THE PROJECTED fuel cost for the four ferries which connect the Northern Isles to Aberdeen this financial year is expected to top £25 million, which is double pre-pandemic figures.
Freedom of information figures obtained by Shetland News highlight the increased cost of running the lifeline service between the Northern Isles and Aberdeen.
The passenger ferries Hjaltland and Hrossey, as well as the freighters Helliar and Hildasay, all use diesel fuel.
The rising cost of fuel has affected everyone from drivers filling up at pumps to ferries and planes.
The steep increases in the cost of fuel are due to a number of factors, including the extra demand for oil following Covid restrictions, as well as Russia’s invasion of Ukraine.
For the current financial year Shetland Islands Council for instance expects to spend £1.65 million more than budget on ferry fuel alone.
And regional airline Loganair added a fuel surcharge to tickets, although for the shortest flights the fee has since been reduced.
Transport Scotland, which contracts the Northern Isles ferry service to operator Serco NorthLink, said the projected fuel cost for running the vessels in 2022/23 is nearly £25.5 million.
In comparison in 2018/19 the yearly cost was £12.7 million, dropping to £12 million in 2019/20.
With the Covid pandemic reducing sailings and capacity around £6.7 million was spent on fuel in 2020/21, rising back to £12.5 million in 2021/22.
But the fuel spend between April and the end of August 2022 was already at £10.7 million.
The figures also include instances where chartered vessels have operated on the Northern Isles routes, such as the freighter Arrow.
The Northern Isles service includes the overnight passenger journeys between Lerwick and Aberdeen, often via Kirkwall, and freight sailings. The figures do not include the Hamnavoe, which runs between Orkney and Scrabster.
Any increased cost for fuel is covered by Scottish Government agency Transport Scotland.
It remains unclear over how the increased fuel costs may affect ticket prices, with Scottish ministers due to make a decision soon on NorthLink fares for 2023.
Transport Scotland referred to a statement it provided back in June, which said: “No decision has yet been taken but we will continue to press the UK Government to take action to address the fuel crisis and pressures on transport businesses.”
A spokesperson for Serco NorthLink Ferries said fuel costs was not a matter it wished to comment on.
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