Yep, you’ve heard them all. “Don’t take your eye off the ball”, “Success isn’t given, it’s earned” or “A goal without a plan is just a wish”. Every one of those were spoken by successful people.
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 26.6 Cents Higher Than DOE 2014 Forecast
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.
I’m a diesel fuel price geek, what can I say. I make my living understanding this stuff. As I was preparing to write my annual projections on diesel fuel prices, I started to wonder, is there any trend that no one is talking about? The Energy Information Administration (EIA) projected 2014 to be $3.77 a gallon, but that was only a month after they predicted diesel fuel would be $3.73 a gallon. My guess, they will probably be wrong on both.
People are creatures of habit. We wake up at the same time, eat the same breakfast, stop at the same coffee shop etc. Fueling up our vehicles is no exception. We go to the same gas station, grab a lottery ticket, pump the gas and continue on with our lives without even stopping to think about it. But what if you did stop and think about the price of fuel? Are your drivers fueling at the lowest price station in your area? Could they be receiving a discount? Well, here at the Sokolis Group our team of fuel experts does that for you.
As we all know, none of us can predict the future. However, we can budget for the future and take out upside risk on fuel prices.
Escalating diesel fuel prices in the news are as common today as predications of upcoming winter storms. Both can take a bite out of your business. Customer cancellations, loss of production time, maintaining equipment, operating your fleet to its full potential are all contributors of ol’ man winter.
That Is The Question.
If you are a Fleet Manager, CFO, President, Owner or Purchasing Department you must have a comprehensive approach to fuel management. Yes, fuel costs are lower now than 2 years ago 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 fleet companies money on extra diesel fuel prices that your fuel companies might be charging you.