Several experts are bullish on diesel fuel prices going higher. Yes, higher diesel fuel prices according to the people who track and analyze the diesel fuel market daily.
I will say this that both Elaine Levin from Morgan Stanley and Tom Kloza, Chief Oil Analyst for OPIS (oil price information services) said, things can always change with so many different factors playing with the oil markets, like the election, Iran issues, Europe issues, etc.
Overall besides that disclaimer, both basically felt that we were looking at $4.50 to $5.00 diesel fuel in the next few months.
Inventory levels are down, not a good sign, exports are up and demand on the trucking side is growing.
I hate high diesel fuel prices but as Klosa put it there is never any outrage by the general publics about high diesel fuel prices because for most people they don’t think it effects them. There is alway outrage when gas price come close to $4.00 because the general public feels that directly in their pocket.
The reality is when diesel fuel prices are higher, transportation costs for all goods and services that people buy are higher like food.
If it costs more in diesel fuel for a truck, train or plane (jet fuel) it’s going to cost everyone more.
What can you do?
I have a quick 3 rule check for you:
- When was the last time you had a thorough review of your fuel program. Let’s be honest! This is the first place to start.
- Are you managing your idle time? What do you think the difference in savings for your fleet is between say 5.5 mph and 6.0 mph. Need to manage this.
- When diesel fuel prices, fuel theft raises. What checks and balances do you have to audit your fueling. Think about this, if people are stealing from you, that is pure lost profit.
Need additional information to saving money. Call your fuel department 267-482-6159
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