What we are paying in diesel fuel price a gallon, here in the United States, doesn’t even compare with what others have to pay for that same gallon. In places like Norway and Great Britain they are paying twice that rate for fueling.
Paying 1920’s prices
When measure on an inflation-adjusted basis, the current price of gasoline is only slightly higher than it was in 1922. According to the Energy Information Administration, in 1922, a gallon of gasoline cost the current-day equivalent of $3.11. Today, according to the EIA, gasoline is selling for about $2.96 per gallon or less than 86 years ago. Given the ever increasing global demand for oil products over the last 86 years and China’s oil consumption jumped by 16.5% in the last couple of quarters and with the increasing diesel fuel prices associated with finding, producing and refining crude oil, it makes sense that today’s motorists are paying more for their motor fuel than their grandparents and great-grandparents did but inflation adjusted we really aren’t. Also, remember your diesel fuel additives are made from petrochemical so when your diesel fuel prices go up so with your diesel fuel additives costs.
High prices, lower consumption
Significant declines in U.S. oil consumption have occurred only after prolonged periods of high prices. Over the last two decades, U.S. consumers have been spoiled by low fuel prices. And those fleet fuel prices led to a buying binge that put millions of giant SUVs, pick-ups and other gas guzzlers on our roads. As a country we have seemed to become a little more conservative in the size of vehicles we buy since 2008. Better selection of cars, fleet companies vehicles and the fear higher diesel fuel prices or gas prices.
We are with you on fleet management
We don’t like paying higher diesel fuel prices just as much as the next company. Certainly, energy is critical to all of our operations in fleet management or any business. To determine how crazy the prices of $4 for a gallon of gas and $5 diesel fuel prices are let’s analyze where the prices comes from. About .50 cents of the gallon is comprised of taxes, in most states. The oil has to be explored, drilled, piped, transported, refined and delivered to make it to your local fuel companies filling hole. Think about how much effort it takes to make the following products and notice their equivalent cost per gallon.
Bottled water $5.16/gallon
Mouth wash $12.40/gallon
Beer $18.00/gallon
Starbucks coffee $15.60/gallon
We might all have to go out and have a few beers, stay hydrated with some bottled water, get a good night’s sleep and rinse with mouth wash and grab a cup of Joe and stare reality in it’s face. Fleet Management cost is not so bad when compared with the other products we use. At least you can put some controls in place for your fleet fuel cards, diesel fuel additives, fleet credit card services so you can achieve fuel savings for most fleet companies. Hard to put controls on coffee.
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