Will Van Operators Disappear soon with Soaring Gas Prices?

Updated: Sep 7

Insight into the gas prices continuing to hit record highs



When you think of van operators, you may associate them with selling food at some summer festivals; I was always fond of ice cream vans which were often the most popular everywhere I went. As a writer from Japan, I see many van operators selling lunch boxes in Tokyo every day. In recent days, however, it has come to my attention that their businesses may be in danger due to the rising fuel costs for vans.


Today, I would like you, readers, to learn the seriousness of the continuation of gas prices in the world, and its extravagant effects on certain businesses such as van operators, specifically the ice cream van operators in the UK.


Firstly, let's discuss the unpredictably soaring gas prices.



Why are gas prices continuing to hit record highs?


One definite reason behind the increase in oil prices is many counties' actions toward countermeasures against global warming. After the Paris Agreement in 2015, we started aiming to reduce as many emissions as possible. However, this has been a continuing procedure and is not the crucial factor for the consequences of the issue discussed.


Thus, the initial triggering cause of the rapid increase in gas prices is said to be COVID-19. Because of the pandemic, oil markets severely went out of control 2 years ago. Even today, they still haven't fully recovered from the damage.

During the pandemic, the oil demand suddenly dropped as people got restricted from going outside and using vehicles, and this temporally led to lower gas prices for 2022. Oil production also decreased with the decrease in demand.

However, this period was also the turning point for devising a considerable increase in gas prices that continues today and drives us crazy. Many future oil traders in the US scrambled to unload their positions in crude, and people had to pay them to take deliveries off their hands.

Soon, as the COVID condition improved, the oil consumption quickly went back, yet recovering the oil production back to its original state is taking significant efforts and time.


Another reason why gas prices are still going up is the limits on Russian oil exports due to the Russian invasion of Ukraine. Since countries sided with NATO have been imposing economic sanctions on Russia, Russia has implemented limits on exports, including fossil fuels.


Consequently, with many causes of the rise in oil prices conspires, and the demand for it outstandingly increasing, the sellers are continuing to advance prices for more profits.


After understanding the nearly unstoppable increase in gas prices, it is succinct that van operators face harsh situations handling businesses. Since they need to fill up the van - which may hit nearly $2,5000 a month - many of them may end up closing businesses as they cannot attain sufficient sales.

In the UK, where many ice cream vans appear in summer, van operators are concerned with their survival. As the Insider suggests, there is also an increase in the price of ice creams due to inflation.



In summary, the ongoing increase in gas prices has not only been the major contributor to making our everyday lives with vehicles difficult, but it has also been a negative factor for van operators.


For the majority of the world, I hope the increase in fuel prices to stop.

At the time, however, it is most certainly understood that there are no possible solutions we could bring up.




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