Are gas prices, diesel fuel costs and crude oil really going up or is this just a bunch of talk. No talk, its real. Diesel fuel costs have remained flat and have actually gone down a little since the beginning of the year but that probably won’t remain for long.
Gas prices are up 45 cents a gallon for the month of May. If it’s March that comes in like a lion and leaves like a lamb for weather, then this year it was May for fuel costs. With gas prices up 45 cents a gallon, crude oil prices up 30% from $50.35 a barrel on May 1 to $67.60 on May 31. Crude oil is back and alive like before.
Why? Great question with no real answers just that it keeps going up. Good news it goes up, bad news it goes up. A long period of $69 a barrel crude oil prices will spell $3.00 a gallon for gas prices and the same for diesel fuel price.
Here are a couple of fuel facts on why Fuel Management is important to keeping your eye on the ball. On December 23, 2008 the price of crude oil was $30.28 a barrel. It’s now 5 months later and $37 more a barrel for oil. Another interesting fact, the last time a barrel of crude was as low as it was on December 23, 2008 was November 25, 2003 at $30.02.
The economy might not be back at full strength and the true fuel price probably shouldn’t be this high right now given the economic conditions, but it is and let’s see how it plays out, right? Wrong, do something about it, NOW!
Don’t go out and try to close the barnyard door after your horse has already run away. It’s to late then, get a fuel management program and plan in place with fuel experts before your shaking your head at $4.00 diesel fuel.
Reach out to Sokolis Group for fuel management & fuel consulting so that we can help you control some of these fuel increases. Call 267-482-6155 or www.SokolisGroup.com.