If you are a Fleet Manager, CFO, President, Owner or Purchasing Department you must have a comprehensive approach to fuel management. Yes, diesel fuel costs are lower now than 4 years ago (remember those days of $5.00 a gallons fleet fuel) but they won’t always be and even if they are lower, doesn’t your company deserve a program that provides security of supply and improved economics of your fuel buying? Don’t spend your company’s money on extra margin that your fuel supplier might be charging you.
According to the Energy Information Administration (EIA), the national average price of gasoline and diesel fuel fell during for the week ending September 21st. The average retail price of regular gasoline fell 5 cents to $3.83 per gallon, still 32 cents per gallon above last year’s average for the same time period. Gas prices fell across every region except the Rocky Mountains, where prices increased less than 50 points and reached $3.77 per gallon.
Well it took 11 consecutive weeks of diesel fuel prices climbing but the national average retail diesel fuel price fell 4.9 cents to $4.086 a gallon during the week ended Monday, Sept. 24, according to the U.S. Department of Energy’s Energy Information Administration. Now your fuel card can get a little rest. With 5 cents a gallon in fuel savings from last week, every 100 gallon fill up saves your company $5. That will help your fleet fueling budget a little.
Wait. Wait. Wasn’t it yesterday that we were talking about too much fuel inventory? Now, a day later there is concerns fuel prices are going to go up because not enough fuel supply. Do these people on Wall Street make this stuff up daily just to get a rise from all of us?
Yet another day went by and oil prices fell. We can hope that the day is soon when diesel fuel prices and gas prices at the pump will follow. Without fuel savings, my fleet fuel card has been burning a hole in the company’s pocket.
Diesel fuel prices rose 0.3 cent to $4.135 a gallon and gas prices gained 3.1 cents to $3.878 — the 11th straight increases for both fleet fuels. The increase was modest compared to the previous 11 weeks as fleet fuel cards have seen there cost shoot up. The fuel savings that was enjoyed earlier this year has long gone away. A fleet manager or fuel manager enjoyed earlier this year when most were getting a pat on the back for just being where they were.
Diesel fuel prices will average $3.96 this year, the Department of Energy said, boosting its most recent forecast by 12 cents on projected higher crude oil prices.
The best way that I can put this simply is that several countries economies stink right now but oil market traders believe that the Federal Reserve will announce stimulus and this will make your diesel fuel prices higher. Ok, maybe to simple but it is fact. As the U.S. economy goes so does the world economy by in large. Our economy has not been very good for years though we are in better shape than a few years ago, we are still not doing great.
When we watch gasoline prices climb steadily higher some of us are stunned when we see how high diesel fuel prices are going. Especially, when most of us are in the transportation section and most of our fleet fuel comes from diesel fuel. The U.S. average today for unleaded regular gas is $3.83 per gallon and for diesel fuel prices are $4.12. It makes a lot of people ask why are diesel fuel prices so high.
For those counting at home, diesel fuel prices have gone up 9 straight weeks. This week diesel fuel raised another 3.8 cents to $4.127 a gallon nationally according to the Department of Energy’s latest information. $4.127 is a lot but that is the national DOE number, in California diesel fuel is the most expensive average at $4.493