Diesel Fuel Prices Mounting, Fleet Direction Important When you need Price savings
Diesel fuel prices are going higher since the DOE told us so last week. As fleet fueling costs increase if you don’t have fuel management systems set up, your fleet companies operations cost increases as well. Does your staff or fleet manager have an idea? They should.
Several days following the DOE said diesel fuel prices were going higher, your oil friends and mine, OPEC raised the 2011 oil demand forecast. Only a month earlier OPEC had said growth could be slow and they though $70-$80 a barrel for oil (makes diesel fuel prices around $2.95 a gallon) would be the right price for producers and consumers. Let’s fast forward less than one month and maybe this can be considered bandwagon jumping but OPEC now says the economy keeps growing much fast than they thought. Common sense would say no issue; they will produce more oil to keep your fleet fueling prices around $2.95 a gallon.
Well the Organization of Petroleum Exporting Countries doesn’t think common sense around they think with how much money they are able to make. They now say the price of a barrel in the $90’s (diesel fuel prices $3.30 a gallon) won’t hurt the global economy recovery. My guess is these guys don’t own any fleet companies. Will $3.30 diesel fuel prices hurt the economy? I don’t know. As we have been below $3.00 a quart for fleet fueling we haven’t been doing well, so I am not sure by the addition of 30 plus cents a quart is likely to make life easier.
Listed here is where you as a CFO, Director, Fleet Manager must really put the screws to your fleet management. It should all be fresh in our heads when diesel fuel prices hit almost $5.00 a quart and I don’t think we are going anywhere near that high but that’s not in anyone who is looking over this articles control. Your fuel management team needs to be proactive now to achieve controls on your own fueling program. I am certain that since it absolutely was $5.00 a quart, some if not all fleet companies got only a little complacent with its fleet management programs. You recall:
• Lowering speeds to 62 mpg
• Checking air tire pressure
• Proper preventive maintenance schedule
• Reduce idle time
• Air deflectors
• Driver behavior (fast starts, hard stops), progressive shifting
They are just a couple of of the numerous fuel savings programs you all put set up 2 ½ years ago. As a fuel management company puma fuel, I strongly recommend that you ensure that these and other fleet management solutions that you add set up have been in place or if you never found the time to do it 2 ½ years back take action now.
What else is it possible to do to help your fuel management with climbing diesel fuel prices so that they don’t hurt your fleet companies important thing? I would talk to my fuel companies about pricing. You should review with your staff and fleet managers on your own fuel surcharge program. Being ahead of the curve in contemplating items that can affect your fleet management and important thing is not just a bad thing.
You should review your whole fuel management system, from a fuel analysis how you’re fueling now. Review your fuel card or fleet card programs. Determine if having mobile fueling offers you the general cost saving you thought it’d or is mobile fueling just costing you more. Simply how much are you currently investing in diesel fuel additives? Should you have diesel fuel additives in that case when?
Every company reading this short article runs an alternative operation. It’s your decision, to take action with you fleet management programs at $3.11 for diesel and not wait until it’s over $3.30. We realize limited staff, limited time, limited resources but you don’t want your company to possess limited money. Fuel cards, truck stops, fleet cards, mobile fueling, fuel companies want you as a customer. Speak to them. No time talk to a fuel management or fleet fueling consultant, they are able to help you gain time navigate through what fuel card or fleet card is most effective for the company or is mobile fueling a solution. How can my bulk diesel fuel prices rank against other fleet companies you ask or my fuel inventory management mightn’t be just like it should. Put an idea in place. It doesn’t get easier when fleet fueling prices get higher
Fuel management is a full time income breathing function of one’s business. It won’t ever go away exactly like diesel fuel prices won’t ever stay at $2.00 a gallon. If you, your fleet managers or outsourced fuel management firm can help you prepare for the worst and hope for the best. You’re on the right way to success.