Diesel fuel prices rose for a seventh straight week, jumping 7.4 cents to $3.407 a gallon according the Department of Energy (DOE). The last time fleet companies paid this much for fleet fueling was
$3.482 on Oct. 20, 2008. Of course this is the national average for diesel fuel prices if you live in anywhere west of the Mississippi or you are buying your fleet fuel at a local gas station your fueling prices are way beyond this weeks numbers. Gasoline also rose, increasing 1.5 cents to $3.104 a gallon, also its seventh straight increase. It is at its highest level since it was $3.152 on Oct. 13, 2008. Do we see a trend on these fueling prices going up? I think we do. I would not expect diesel fuel prices to make as big as gains next week because crude oil has been hanging around $91 a barrel on the New York Mercantile Exchange. There is always a lag between what crude oil prices do and what gas prices and diesel fuel prices do at the retail fueling level.
This is a questions that I have been getting a lot lately where is the fueling prices going to go. I think its pretty straight forward and its higher. The DOE and the projections of $3.40 for the year could happen for diesel fuel prices but I wouldn’t bet on it. The question I ask back to our non clients is what are you doing for your fuel management? Do you have a strategy or are you going to blow your fleet management budget in the first couple of months of the year.
What we do for our outsource fuel management clients is we keep them in the game. We have strategies for the fuel management system as part of the fleet management. Most of you reading this article are probably a VP, Director, Fleet Manager or Fuel Manager. You have been around fleet companies for more than 10 years and you’re between 45-55 years old. An outsourced fuel management solution might not be something that you have done before. It’s understandable why you might have concerns that your not going to get the fuel savings that you hope for or may need. Restasured that you won’t be the first private, public or fleet companies that uses us.
We are moving into times that are very different when all of our careers were younger. Technology, global economy, China will all play a part in fleet management program. Your fuel savings will be best achieved by having a fuel management system put together to ensure your fuel card, fleet card, mobile fueling is giving your company what it should be providing, fuel savings. Like most companies fleet management or just thoughts in general is your doing it well when it comes to fueling. You might be. You might not be. Isn’t worth a discussion about fuel management now at $3.40 before it’s $3.80 for diesel fuel. We have had clients come on in October when it was $3.00 for fleet fueling. There fleet fueling cost has increase over the last 3 months but not by 40 cents per gallon. We made sure they were given fleet management solutions to lower costs. Fueling audits so they were being overcharge, just be charged a fair fueling rate with their fuel cards, fleet card or mobile fueling.
Or provided they with better locations to for fueling that didn’t take their trucks out of route. Mobile fueling so they could lower drivers cost if they couldn’t totally control diesel fuel prices. Integration of fuel management data so no fraud, theft could take place and as important fuel budgeting could take place more easily because after all, if fleet fueling prices keep going up, revised budgets to management will be a bigger priority. Until next time, give me a call 267 482 6160, your fuel management system budget will love you for it.