Diesel fuel prices have been climbing and the trucking industry has felt that over the last few months. We all have seen gas prices go up but how much has it been. Let’s call it a new gas price high for the past 28 months. For simple economic here is a new one, supply is good and demand is weak and gas prices still climb and put a pinch on fleet fueling for companies.
Eight states have gas prices averaging under $3.00 a gallon. Hawaii is already at $3.746 a gallon but hey they get nice weather 365 days a year so it can’t be all bad.
As fleet credit card and fuel card companies report demand for gas has been down. Some of it is probably do to the weather that most of the country has experienced the past month. As fleet management goes for companies running on gas it’s hard to tell what might happen next.
OPIS Chief oil analyst, Tom Kloza sees gas prices in the range of $3.50 to $3.75 by spring. I have heard about spring is in the air but with those kind of fleet fueling prices for gas, I don’t know if I like that air.
In today’s inventory reports by the DOE it was reported crude oil and gasoline had builds in supply and diesel fuel price (I should say supply, you know if supply goes down prices will go up) diesel fuel supply went down. The fleet card companies or fuel cards might say that we aren’t buying as much but with the Middle East changing every day, I think it has most people believing the risk of supply is going higher.
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