Do we sound like a broken record now that diesel fuel prices have gone up nine straight weeks. The cost for your fleet fueling didn’t hurt as much this week with only a .8 cent increase to $3.438 a gallon nationwide. It does make diesel fuel prices 65 cents higher than this time last year. Ouch. Listen here fellow fueling cost watchers. The gloves are off when it comes to where your fleet fueling costs are going to go. One word ok, maybe it’s more like several words. Egypt. Middle East. The increase already in crude prices of $6 a barrel since this new twist to your fleet management budget started to unravel on January 1.
As was pointed out a week or so ago, your fuel management system might get back into shape because crude oil had gone from $95 a barrel down to $86 a barrel, so diesel fuel prices would follow in the next few weeks. Hold your fleet fueling card tight. With crude oil back over $92 as this article is being written, this might be the straw to push the $100 a barrel crude back into the picture.
I know you side line watchers give the old EOR. What can I do with my fuel cards and fleet cards to reduce fueling cost? I think my mobile fueling price is good? We have been using the same fuel companies for years they take care of us. I save, sure, sure, sure and get your head out of the Arab sand.
Let me help everyone with something, when fuel companies, fuel card, fleet card, mobile fueling, major oil companies make the most money? When fueling prices are higher! Why because it is a lot easier to take a couple of cents a gallon on a product that is $3.50 then a product that is $2.75. Fuel card, fleet credit card services, fleet cards they make their money off of a percentage of the sale. Is it better for your fuel card company when fleet fueling prices are $3.50 or $2.75. Figure depending on what fleet card or fleet cards you are using someone is getting paid 1.5% to 2.9% of the sale. Oh yes. What truck stop, mobile fueling company, card lock company can afford to pay 2.9% of the total fueling sale and still remain in business, maybe we should ask WEX. Yes, the same WEX, Wright Express that provides you with all of these wonderful reports, but you need a fuel manager and 2 assistances to review the information because it’s just a whole lot of information. We are not here just to pick on WEX or Voyager. Somewhere each fleet card or fuel card is making money on higher prices. Are your fleet management services going up to because the price of fuel is going up?
Listen, your company is busy trying to make a splash in this economy that is starting to come around. Does your fleet manager or fuel manager really have the time to put together a solid fuel management solutions for fuel savings. Does the fleet manager or his staff get the right fueling data to know which way is up? This fleet fueling market is nuts. The time to take action to get your fleet management and fuel management plan was months ago but don’t ERO it and put it off until diesel fuel prices reach $4.00. Take steps now.
Hire a fleet management consultants, get your fuel management systems in line, make sure your fuel inventory management is working. Trust us. When prices are $2.50 a gallon, you have fuel theft and you probably don’t even know it. At $4.00 a gallon for diesel, you also will have fuel theft and probably not know it either without the right fuel management programs in place.