Diesel fuel prices are now $4.158 on a national level as reported by the Department of Energy (DOE). This provides no relief to fleet managers and their fleets. It just provides more discomfort this week for the CFO’s signing off on fuel card invoices, bulk diesel fuel bills and truck stop fuel transactions.
Diesel prices have gone up 6 straight weeks and are up more than 26.5 cents a gallon during that time. For most trucking companies fuel surcharges can’t keep up with the rapid increase in their main fleet fuel.
For private fleet companies, they have no where to turn in most cases for to differ the increase in their diesel fuel prices. Their choices are simple, suck it up or raise the price of their end product. Most choice to suck it up and hope for a market decline in fuel costs.
Meanwhile for those at a company trying to keep their fleet management on budget are finding it very difficult with gas prices. Again this week gas prices went up another 3.7 nationwide according to the DOE. This puts gas prices at $3.784 per gallon their highest levels since October 2012. It also shockingly makes gas 53 cents more expensive than it was on December 17.
We all must have gotten coal in our stocking or something to have to pay 53 cent more today than we did 10 weeks ago. That is a 15% increase for gas, which put a major hurt on fuel savings, as well as how much your fleet fuel card is getting used.
Most companies just don’t realize this major swings in diesel fuel prices or gas prices until they get that fuel card invoice. Our view is you need to be ahead of the fleet fueling ups and downs. There are several ways you can do that depending on what kind of company you are.
Risk management might be a good solution for some companies so they can keep control of these fleet fuel costs. Another way might be to better strategically source your fuel program. Or the best is to outsource your fuel department to a staff of professionals that are involved with truck stops, fuel card providers, mobile fueling companies, fuel additive companies as well as directing your fleet where to buy.
Please feel free to reach out to us at 267-482-6160 for help or www.SokolisGroup.com
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