Recent increases in gas and oil prices over the past few months have started to affect the AdBlue Market.
in order to reduce your nitrous oxide emissions, AdBlue can be used.
AdBlue is a trade name for AUS32, an automotive urea solution.
In order to use AUS32, the vehicle must be equipped with an SCR (selective catalytic reduction) unit. the fluid is passed through the SCR and into the exhaust. AUS32 is made using Urea mixed with De-ionised water.
Many vehicle manufacturers across Europe have embraced this new technology to ensure that their vehicles meet new European standards, Euro 4 and Euro 5.
an alternative method is exhaust gas recirculation but many feel this other technology may not meet future requirements.
As with many other industries, recent increases in gas and oil prices over the past few months have started to affect the costs involved in producing the automotive solution.
Considering the primary component is Urea and the continuing increases in energy costs have driven up the cost of production in plants across Europe. Several leading manufacturers of the solution have started to make changes already to compensate for the increased cost of production.
These factors, when combined with the sharp change in the Euro exchange rate are likely to take their toll on British suppliers of the product, and many more are yet to reflect these changes on to their customer base.
now with prices exceeding one pound per litre at the pump, the changes have hit many operators hard. Transport costs continue to rise and are higher than ever.
SCR fleet operators will still benefit from the 6% savings associated with using AdBlue technology but it is inevitable that haulage costs will continue to rise also.
Inevitably cost savings will need to be made elsewhere, fortunately SCR equipped vehicles will continue to avoid London's recent high emissions tax and other European cities which are expected to follow suit (Birmingham, Paris and Milan) will also offer some comfort to modern fleet owners.
This news has sparked some panic buying amongst the larger fleet owners, but with a shelf life of somewhere between 6-18 months, most consumers of the product have decided against the need to buy in bulk.
One this is for certain, the cost of transportation will almost certainly continue to rise until the impact on our environment can be controlled effectively.