The average cost of gasoline rose for the first time in over 5 weeks to $3.258 per gallon, which is up 2.9 cents from last week and 20.6 cents from last year. This weekly increase is most likely due to the high volume of holiday travel, and should decrease again with the conclusion of the holiday season.
On the other hand, diesel fuel prices dropped to $3.791 per gallon, down 3.7 cents from last week. However, the diesel fuel price is up almost 50 cents from last year. According to the U.S. Energy Information Administration, diesel fuel prices are expected to average around $3.85 per gallon in 2012, which is about the same as this past year. This might not be the best news for your fleet fuel cards, but at least the average prices are not anticipated to rise.
Crude oil prices hovered around $100 per barrel this past week. Kevin Jones of the Associated Press states that “overall in 2011, crude prices averaged $95.09 per barrel in New York. That’s up from $79.64 in 2010 and from $62.11 in 2009. The Energy Department expects prices to rise further in 2012 to an average of $98 per barrel.”
The International Business Times state that Iran has said it will close the strategic waterway through which more than a quarter of the world’s tanker-borne crude passes if the U.S. and allies go ahead and impose tougher sanctions on account of Tehran’s alleged nuclear bomb project. The U.S., and its chief ally in the region, Israel, are determined to deny Iran a balance-tilting nuclear bomb. That means the nuclear plot will only thicken in the months ahead, implying also that crude prices will continue to remain volatile.
In order to get the most fuel savings as possible, especially with the volatility of prices in the future, give Sokolis Group a call. Our fleet management and fuel management systems will help your company get the most for your money, which is vital in these tough economic times.