Many fleet managers, controllers, and CFOs might be surprised if they discovered they were overpaying fuel invoices because they included line items disguised as government taxes and fees. At Sokolis Group, we‘re not surprised because we see this happen frequently. Prior to becoming a Sokolis Group client, these companies typically just signed off on fuel invoices that contained “special” taxes or environmental fees. These bogus fees are nothing more than an additional revenue stream for the fuel supplier. However, in some other cases, we’ve also discovered legitimate taxes were not charged when the company was actually liable for the tax.
Why should stability be a precursor to instability?
A recent article in the Washington Post referred to the economist, Hyman Minsky, who explained, “Financial stability is destabilizing. The longer markets are calm, the more people plan on them staying that way. People take bigger risks and take on bigger debt because it doesn’t seem like anything can go wrong — until it does, and all this leverage turns small losses into big ones due to forced selling from margin calls.” Continue reading Are The Fuel Markets Stable?
Years ago, companies were hesitant to direct drivers to fuel stop networks. They were fearful drivers would get upset and leave. Today we are facing the same issues we did back then. “Driver Shortage” But, a lot has changed since then. The need for a company to manage their fuel cost has become a necessity and drivers understand this more than they have in the past. Drivers have become accustomed to working at companies that lock down their fuel network. Many companies are using optimizers that give a fuel solution with each load dispatched.
Diesel fuel prices have been rising steadily over the past month. Most of us are accustomed to volatility in fuel prices, but they have actually been relatively stable over the past 10 months. About a year ago, diesel fuel prices were approximately 15 cents higher than where they are now. Then, the price fell rapidly during March 2013 and hovered around an average of $3.90 per gallon across the U.S. until a few weeks ago.
Mobile Fueling holds a labor cost savings value to customers that choose to use it. In many instances auditing these type of transactions internally in more difficult as the transactions may not process to the card vendor at time of delivery.