Fueling Prices Are Dropping, But…

As we write this, the price of oil has dropped to $27 a barrel, a 12 year low, and down from the $100 per barrel mark about a year and a half ago.

The national average price for diesel fuel is at $2.07 a gallon. It seems like good news for fleet owners, but…Well, there’s always a “but,” isn’t there?

In the case of fuel prices, consider the law of gravity, only in reverse: What goes down will go up.

Fuel prices tend to move in cycles. Let’s look at some recent history.

In March 2009, the average retail price for diesel fuel fell to a low of $2.01. Three months later, it had risen by sixty cents.

By the end of March 2010, truckers were paying $2.61 a gallon for diesel fuel. By the end of the month, the cost had risen to $3.01 a gallon. By the same time the following year, retail diesel prices were at an average of $4.07 a gallon.

So even though fuel prices are low now, fleet owners should still take steps to improve their fuel purchasing methods in order to protect themselves when fuel prices begin to rise.

It’s also important to point out that even when prices are low, fuel invoices still need to be audited for accuracy. It’s not uncommon for fuel invoices to include incorrectly billed prices, fees, and/or taxes. Volatility in the market can increase the odds of a billing error.

In addition, while you may be paying less for fuel now, delivery fees and fuel card transactions may still be too high. Plus, no matter the price the proper controls need to be in place to help prevent theft or fraud.

Sokolis can help you manage all of those things. We’ve spent more than a decade helping our clients reduce and control their fuel costs. We can work with you to negotiate fuel purchases with your suppliers, audit your fuel programs for errors, and collect, analyze and report on data collected from multiple vendors.

Sokolis can also help by evaluating your company to see if mobile fueling is right for you. Mobile fueling can save your drivers time, giving them more time to make deliveries. We can help you manage a fuel card program, allowing you to take maximize advantage of control features and benefits. We can save you money, no matter how high or low fuel prices go.

{{cta(‘1c0167df-e458-4b6f-879d-c726d8125d46’)}}