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Diesel Fuel Price Up!

Posted on May 21, 2013 by Sokolis

Diesel fuel prices rose for a second consecutive week, rising 2.4 cents to $3.89 a gallon, while gas prices jumped 7 cents to $3.673. Diesel fuel  had declined for 10 weeks prior to the current gains, dropping 31.4 cents in that string of downturns.

Despite the increases, diesel fuel is now 6.6 cents below the same week last year, while gas prices are 4.2 cents under a year ago. Think about all of the ups and downs in diesel fuel prices and gas prices and here we are one fuel year later and we are basically a nickel away from what we were 52 weeks ago.  Talking about a fleet managers wild ride over the year.

Gasoline, which had declined 26.4 cents in nine previous straight declines, has increased 15.3 cents in the past three weeks of increases. The gas price increase was the biggest in three months, since the motor fuel rose 13.6 cents on Feb. 18.

What’s up doc? As I said a few week ago diesel fuel prices and gas prices will be up short term.  Expect that to continue for another few weeks.  To keep your company protected make sure your fleet management program continues or starts to strategically source its fleet fuel.  You can never have enough check and balances in place to prevent fuel theft so stay on top of it.  Truck stops pricing will always lag the market as they try to maintain as high of diesel fuel margins as possible.

Confused? Need help! Nobody not even the best fleet mangers can be experts at everything. Outsource fuel management and get fuel savings.  Just call 267-482-6159.

Posted in Uncategorized | Tagged diesel fuel prices, fleet managers, gas prices, strategic sourcing, truck stops | Leave a comment

Diesel Fuel Prices and Lady Luck

Posted on May 9, 2013 by Sokolis

Diesel fuel prices up, diesel fuel prices down. Where is it and why? The same can be said about gas prices but the answer is not easy. Last week, I was asked for a prediction on diesel fuel prices for the next 12 years.  I wanted to say, I can’t go to a casino and predict Black or Red enough on roulette, so I don’t gamble but you want our company to predict diesel fuel prices, not for next week, but for 12 years in the future?

Well we turn to the good old Department of Energy better known as the DOE. Now if there is anyone we would feel more comfortable with giving us a prediction it’s a government agency. The DOE predictions cover 25 years of future diesel fuel prices, gas prices, crude oil, propane and any other kind of energy.

If they were a baseball player they would never make the Hall of Fame.  Actually, I don’t think they would make it out of the minor leagues, but given the same task, who could?

I am 46 years old, when I was 10 and watching the Jetsons, I thought by the time I got to be my present age we would be flying around in space crafts. Even in in 1976, when my Dad took me to the Philadelphia Phillies game and “Rocketman” was there flying around in his jet pack, I would’ve thought that nearly 40 years later we should all have these things instead of cars for short trip, right?

But truthfully, we don’t. We have some hybrids, a few electric cars and now CNG, or LNG vehicles, but really what happen?  40 years, 40 years some guy way back when had the Jetsons idea. Think of all of the things that happen in forty years. Computers in this country and almost everywhere and they’re getting smaller every day.  Pads and cell phones that act like computers from 40 years ago, and Recycling (who would have thought of that when people use to change their oil in their car by a storm sewer), the list of things is never ending.

Why nothing like the Jetsons? Seems safer to me than a motorcycle.

I have gone way off topic but I hope it brought back some nostalgia to most of you.  The best way to truly manage diesel fuel and gas prices in your fleet management is to understand margins, markups or whatever you want to call it. Get it, know it and manage it for your company.

Or even better yet, Outsource, NO, not to India or China, to Warrington, PA, USA.  We will make sure your all of your fleet fuel is handled correctly and make all CFO’s and Fleet Managers hero’s!

Your Fuel Department 267-482-6155

Posted in Uncategorized | Tagged diesel fuel prices, DOE, fleet fuel, Fleet Management, fleet managers | Leave a comment

Fleet Fueling Thoughts

Posted on May 7, 2013 by Sokolis

I went back over the last 4 years and even though we are a fuel management company that wants to grow our business, we also want to protect the “regular guy”. In that time, I personally, have done over 15 newsletter articles, YouTube videos, or have been a contributing writer for other publications dealing with diesel fuel audits.

I started this business 10 years ago and I have always said this is a dirty business, and it’s not always because of the diesel fuel. There are many reasons why:

  • Too busy
  • Don’t have the proper tools and experience
  • Know nothing and don’t want to admit it
  • Not paying enough attention
  • Or about 50 other reasons our firm has heard throughout the years

If you had a tooth ache, you would call a dentist, you wouldn’t try handling it yourself. If your truck needs tires you call your tire manufacture, you don’t try to make them yourself. If you’re trying to manage your diesel fuel management, you call fleet fueling expert.

If you are sitting there saying maybe our way isn’t the best way. Give us a call 267-482-6159 or email Conor Proud to talk things through a little with you at Cproud@sokolisgroup.com.

PS

Did I ever tell you the story about a client of ours in 2008? We had their bulk fuel pricing all negotiated on a formula basis and as you might recall in 2008 diesel fuel prices went wild.

They took (2) 7,500 gallons of diesel fuel, signed off on the invoices and accounts payable people paid them. Since payments on diesel fuel need to get through clients internal systems very fast to make the credit terms, we don’t do fuel audits on the same day because we don’t want to slow down the process. We do however audit/review all invoices once they are paid.

Well, this company signed off and paid for 15,000 gallons of diesel fuel for $6.50 a gallon, when the real price should have been $3.50 a gallon, the fuel supplier had a “Fat Finger Sally” as I like to say and made a really honest mistake and instead of typing in a 3 typed in a 6 on her keyboard.

When my Vice President called the fuel supplier they realized their mistake right away. When she called our client to report the error and refund that we secured, they were understandably upset with their own internal employees for not catching it first, but also understood how their accounts payable department once it is approved would not see the mistake.

They were grateful they had a second checkpoint in Sokolis Group to stop overcharging, whether accidental or on purpose. Final money rebated to our client, over $45,000 for 2 loads purchased on the same day.

Have a diesel fuel question, ideas or want to be a client, Call Now! 267-482-6159 or Click here.

Posted in Fuel Management | Leave a comment

Diesel Fuel Losses Happen Everywhere

Posted on May 7, 2013 by Sokolis

It has always been known that diesel fuel losses take place. The issue most companies always thought they had in the past is how to control diesel fuel theft with their drivers. With truck drivers running around and fleet fueling prices going up and down, fuel theft should not be a surprise. Some companies are well aware of the problem and others aren’t.

The reality is, diesel fuel losses happen everywhere. As we have all read in the headlines over the past few weeks, it could be a truck stop trying to make money. It could be your driver stealing fuel; fuel being siphoned out of your truck ( which is the least likely of all). Or how about these:

  • Your discount at a truck stop was not set up correctly with your fuel card provider. This just happened last week with a client of ours; major truck stop chain that is not in the news and major fuel card company that would have resulted in a loss of $40,000 if not caught.
  • Mobile fueling providers process your diesel fuel transactions multiple times through a fuel card. Not on purpose, just real system issues for the fuel card company. We catch tens of thousands of dollars a month with this happening.
  • Bulk fuel your company gets charged for: the day before or day after price, added freight cost or demerge fees, and no one at your company is watching
  • A major truck stop (another major chain that was not in the headlines) has system issues. Over 20 of our clients had discounts wiped out for several weeks, until we detected the problem. Most clients received a credit back of $3,000 to $6,000. Honest mistake, but had it gone unnoticed. We’re are only talking a few cents a gallon, but it could still be happening today if missed. Maybe it is happening to you?

It takes solid fleet fuel card controls and fuel audits to truly know if your company can be getting hurt by diesel fuel theft.

When your driver has your company fuel card, a lot of damage can be done to a company’s piggy bank if you don’t have proper fueling controls in place. We could tell you hundreds of stories in added diesel fuel costs because no one person or team of people were closely watching all of the fuel transactions.

If your company buys its diesel fuel over the road, you probably use some type of fuel card or fleet credit card. These fleet fuel cards have controls, but you have to put them in place and adjust them.

If you have a bulk fuel tank that doesn’t have a card system and your drivers are writing down how many gallons go into there truck, good luck with that!

This goes for just about anything, but this phrase always sticks in my head. “They don’t respect, what you don’t inspect”.

Most companies best defense is good fuel management or fleet management program. A team of people reviewing fuel transactions with a very active fleet manager or fuel manager to make sure you are not losing any money because of fleet fueling fraud or diesel fuel theft.

Of course for most companies time is not on their side. There are many tasks that need to be covered during the day to keep operations running smoothly and customers happy.

You could outsource your fuel department. Companies outsource fleet management and repairs all of the time. They outsource driver compliance logs, IFTA filings and many other items. Some people might not even consider to be outsourced for these services. They would look at it as strategically sourced to a firm that knows more than they do and their company can focus on what it does best.

So strategically source your fuel department. After all when you have trucks there aren’t too many things more important than your fleet fuel, right? If you don’t have a fuel expert, why struggle? Not to mention the lack of endless headaches suffered when you have to deal with these diesel fuel fraud cases alone and with no support.

Fueling Good or Fueling Bad or Just Don’t Know, call 267-482-6159 or Click Here 

Posted in Fleet Management, Fuel Management | Tagged diesel fuel prices, diesel fuel theft, fleet managers, Fuel Management | Leave a comment

Diesel Fuel Prices and Lady Luck

Posted on May 7, 2013 by Sokolis

Diesel fuel prices up, diesel fuel prices down. Where is it and why? The same can be said about gas prices but the answer is not easy. Last week I was asked for a prediction on diesel fuel prices for the next 12 years.

I wanted to say, I can’t go to a casino and predict Black or Red enough on roulette, so I don’t gamble but you want our company to predict diesel fuel prices, not for next week, but for 12 years in the future?

Well we turn to the good old Department of Energy better known as the DOE. Now if there is anyone we would feel more comfortable with giving us a prediction it’s a government agency. The DOE predictions cover 25 years of future diesel fuel prices, gas prices, crude oil, propane and any other kind of energy.

If they were a baseball player they would never make the Hall of Fame.  Actually, I don’t think they would make it out of the minor leagues, but given the same task, who could?

I am 46 years old, when I was 10 and watching the Jetsons, I thought by the time I got to be my present age we would be flying around in space crafts. Even in in 1976, when my Dad took me to the Philadelphia Phillies game and “Rocketman” was there flying around in his jet pack, I would’ve thought that nearly 40 years later we should all have these things instead of cars for short trip, right?

But truthfully, we don’t. We have some hybrids, a few electric cars and now CNG, or LNG vehicles, but really what happen?  40 years, 40 years some guy way back when had the Jetsons idea. Think of all of the things that happen in forty years. Computers in this country and almost everywhere and they’re getting smaller every day.  Pads and cell phones that act like computers from 40 years ago, and Recycling (who would have thought of that when people use to change their oil in their car by a storm sewer), the list of things is never ending.

Why nothing like the Jetsons? Seems safer to me than a motorcycle.

I have gone way off topic but I hope it brought back some nostalgia to most of you.  The best way to truly manage diesel fuel and gas prices in your fleet management is to understand margins, markups or whatever you want to call it. Get it, know it and manage it for your company.

Or even better yet, Outsource Fuel Department, NO, not to India or China, to Warrington, PA, USA.  We will make sure your all of your fleet fuel is handled correctly and make all CFO’s and Fleet Managers hero’s.

Does your company need strategic sourcing for diesel fuel, truck stops, fleet management, Let’s talk 267-482-6159

Posted in Uncategorized | Tagged diesel fuel prices, Fleet Management, strategic sourcing, truck stops | Leave a comment

Diesel Fuel Drops Slightly, Uphill Curve Likely

Posted on May 6, 2013 by Sokolis

The Department of Energy, DOE reported today that diesel fuel prices drop six-tenths of a penny for the week.  The national price for diesel fuel now stands at $3.845 per gallon.  It does make this ten straight weekly decreases.  It’s been a great ride and fleet management, I am sure is happy to have the lowest fleet fuel prices since last July.

However, with crude oil hitting over $95 a barrel last Friday the highest in over a month, I believe the winds are about to change on the cost of diesel fuel short term.  Don’t be surprised if you see prices turn and head to that $3.90 mark per gallon.

What should keep fleet fueling prices in control is high crude inventory levels.  That just needs to be converted into diesel fuel supply.

Not to take away from gas prices but they too fell for the week, down 1.8 cents to $3.538 a gallon.  With summer time nearing and crude prices increase, look for your gas prices to increase 5-7 cents per gallon until we hit mid June.

Until next time, good fuel management call 267-482-6159

 

Posted in Uncategorized | Tagged diesel fuel prices, fllet fueling, gas prices | Leave a comment

Diesel Fuel Declines 3.6 cents

Posted on April 29, 2013 by Sokolis

The Department of Energy reported that diesel fuel prices declined by 3.6 cents for the week, bringing the cost in at $3.851 a gallon.  This is the lowest diesel fuel prices have been since August of 2012.

Crude oil prices have been raising and are their highest level in two weeks, so we would expect that we might have reached the floor for diesel fuel prices at this point or very close to it.

Posted in Uncategorized | Leave a comment

Fuel Cards for Fleet Management

Posted on April 24, 2013 by Sokolis

Fuel cards or fleet cards are payment methods for purchasing fuel at truck stops.  These fleet cards can also be used to pay for various maintenance/expenses on vehicles in a fleet management.

There are many benefits to moving your fleet onto fuel cards.  One of the biggest benefits of using a fuel/fleet card is that it eliminates the need for drivers to carry cash which in-turn allows all diesel fuel and gas transactions to be easily tracked.  An entire fleet’s fuel transactions can be tracked and analyzed when using a fuel card.  This can be very beneficial to a fleet manager and allows you to look at driver activity, MPG, fueling locations, etc.  This also makes it much easier to catch fraud or theft.

Using fuel cards can also give a fleet manager more control over the purchases being made by their drivers.  Purchasing limits can be set on each card to prevent fuel theft and unauthorized purchases.  Another benefit is drivers are able to use the fuel cards to pay at the pump and no longer have to wait in lines.  This causes them to spend less time stopping to diesel fuel and gas so they can get back on the road quicker.

Overall, fuel cards are a great idea for any fleet manager who wants to improve his fleet management. 

Need help with your Fuel Cards, Fuel Rebates, Diesel Fuel Auditing and overall Fuel Management we are here for you 267-482-6159 or click here.

Posted in Uncategorized | Tagged diesel fuel audits, diesel fuel prices, Fleet Management, fuel cards | Leave a comment

Why Are Diesel Fuel Audits Important?

Posted on April 23, 2013 by Sokolis

Why are diesel fuel audits important? It almost seems like an effortless question. It’s common sense really, right? Well…is your fleet auditing their fuel purchases? If I had to put a number to it, I’d guess that only 50% of fleets are doing it. Even that is probably a generous number. Out of the 50% probably half are only doing it as regularly as they should. It’s really a full time job, and the larger the fleet, the harder it gets.

Let’s create a scenario. You’re a decent sized fleet. You have about 350 tractors, and purchase between 350,000-400,000 gallons per month at your 8 locations. You have discounts with a few major truck stops, and some local mom & pop stops. Fuel program is set, now you can forget? Wrong!

You probably have a good 3,000 transactions per month. A lot of these discounts are programed through a system that has a lot of human interaction. They have people manually entering information in to the system, which of course allows for human error (Fat Finger Sally). A simple data entry error can cause your once strong discount to be not so strong. If you’re not checking with tools such as OPIS (Oil Price Information Service) how would you notice a few pennies here and there?

Take it a step further and assume that these fuel companies are out to make money like the rest of us. Their once generous discount is not making them enough money in their eyes. They want to maximize, even over maximize profits. Now they’re inching up your diesel fuel prices little by little. Again, without someone watching like a hawk, how will you notice?

You’d probably just assume it’s the market, if you even noticed at all. Let’s say that you told the truck stops or fleet fueling provider that you were going to give them X amount of gallons per month; and for whatever reason you were not hitting that X gallon mark. Are you being informed by those truck stops/fleet fuel providers that they will be raising your rate?

You have to constantly monitor and measure all aspects of your fleet management, right? Tires, maintenance plan, fuel management which for some companies has been outsourced for a long time. It’s a time consuming job, and you must have tools, knowledge and relationships to stay ahead. Of course if you don’t there are people out there that you can hire to help.

What we have all found out over the last couple of weeks at truck stops, was not something new to all of us. We have seen mistakes made by others, yes mistakes and probably not with intent but even a mistake not caught could cost your company hundreds of thousands of dollars. What we are seeing to unfold this week might be the biggest intent for 1 company to actually falsify numbers in the fuel industry. 

Our company was started based on fuel audits.  As a former owner of a fuel company, I saw how most people and companies didn’t understand pricing, indexes, taxes, especially since it’s always moving. We would lose clients because some other company was offering cost plus pricing. We were offering OPIS plus pricing. The other companies cost plus were cheaper, but how was the word “cost” defined? It wasn’t.

The truck stop company with 2 names put together does not look at this point like they did the ethical thing. We will let the court decide on that. If you have been in trucking, the second name in that truck stop that went bankrupt 5 years ago, was always messing with their clients diesel fuel prices. No point of sale. All rebates. You had to use their fuel card. It was based on a monthly average. All very interesting now, if you think back, right? Most people probably thought the actual truck stops were the most valuable piece, but perhaps it was the intellectual capital and maybe even the fuel card.

We are here to help 267-482-6159  Cproud@sokolisgroup.com

Posted in Uncategorized | Tagged diesel fuel prices, fuel audit, pilot flying j, truck stops | Leave a comment

A Date With Lower Diesel Fuel Prices Again

Posted on April 22, 2013 by Sokolis

8 for 8.  Diesel fuel prices fell yet another week, making this the 8th straight week.  The national Department of Energy (DOE) reported diesel fuel prices fell 5.5 cents for the week of April 22, 2013.  This makes the cost of diesel fuel $3.887 per gallon.  This almost 2 dimes (19.8 cents) cheaper than this time last year.

At most truck stops you have notice the decrease in your fleet fueling price.  Truck stops are holding onto their margin or markup to most companies on their diesel fuel.  If you want you want this stuff reviewed to make sure you are getting the correct pricing, reach out to 267-482-6159.

Gas prices went down also but only six-tenths of a penny to $3.536 a gallon.  Not as great as we would like on our fuel cards but at least it is down and not up.  Both gas prices and diesel fuel have helped fleet management budget costs over the past few months.

With some many crazy things going on with truck stops this week, bombings and a whole major city under seize, maybe it time.  Maybe it’s time to trust a company with your fuel management.

Watching your fleet fueling prices:

  • Ensuring you’re paying the lowest margins or markup for a company your size
  • Auditing your fuel purchases to make sure you get the correct monthly rebates or correct point of sale deal
  • Helping your company better understand diesel fuel prices and working for you, like a watch dog
  • Strategic sourcing your diesel fuel so your buying from the right mode for each of your terminals, over the road (OTR), bulk fueling, mobile fueling, fuel card selection.  We watch out for your company.

Call Now, Let Us Help You 267-482-6159.  cproud@sokolisgroup.com trust him, list to our clients.

Posted in Uncategorized | Tagged diesel fuel prices, DOE, fuel audit, strategic sourcing, truck stops | Leave a comment
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Sokolis Group Fuel Management
Warrington Greene, 1432 Easton Road Building 2F
Warrington, PA 18976

267.482.6155