Diesel Fuel Prices, Where Will They Head and How They Could Affect Your Fleet Management

Well here we are March 6, 2013 and the National Department of Energy diesel fuel prices are $4.130, slightly less than last week by 2.9 cents is this making you change your fuel management? It should be making you look and exploring as many ideas as your company hastime to. Diesel fuel prices are always going to play an extremely important part to your company’s success or failure.

Every fleet manager I know is pretty competitive, do you want your company to fail? How about you, Mr. CFO, Company President or VP of Finance, do you know how important diesel fuel and fuel management are to your company? Call me direct 267-482-6160, Glen Sokolis. Let’s move on to the rest of this article.

Let’s take a look at what is happening with diesel fuel prices right now. Distillate inventory, which diesel fuel falls under, has heating oil inventory levels at their lowest levels in the 3 years, but that is largely due to may refinery upgrades and switch-overs during the past few months. In the Northeast, there have been many changes in ownership which has led to slower production, but that will soon be picking up.

Crude oil on the other hand has been at its highest levels for inventory in the last 3 years so this should flow down to improve distillate levels and lower fleet fueling costs.

As we all know, there are many wild cards with diesel fuel prices since 70% of the world uses diesel fuel as its main fuel for transportation.

There is good news and it comes out of 2 largest countries in the world:

Providing we don’t have another Arab Spring with further Middle East uproar putting tension on the markets, things could be looking good for us.

China just announced last week that for the first time since September, they will be raising diesel fuel prices. With this increase effecting all of China this should help to temper their diesel fuel consumption and as they are one of the largest users of this product, their lower usage should leave the rest of us with more product and therefore lowering the prices in our markets.

Additionally, India’s state-run oil companies announced this past Saturday that they are also raising their diesel fuel prices. Typically when prices go up on anything, consumption tends to go down. With the 2^nd and 4^th largest energy users in the world possibly lowering their usage over the next few months, fuel management should be a bit easier with more fuel savings coming when your driver goes to a truck stop and uses your fuel card. For more help on your fleet management call 267-482-6155 or click here.