Posts Tagged ‘diesel fuel prices’
By Sokolis Group - February 18th, 2011
I wouldn’t expect your fleet fueling prices to fall anytime soon. China ordered banks to hold back more money as reserves in its latest move to control inflation. The government has used a series of interest rate hikes and increases in reserve levels in an effort to slow inflation in its robust economy. This kind of stuff usually helps the markets settle down and keep things like diesel fuel prices from raising. Houston we have a problem. Its call the Middle East, home of sun, fun (if you like getting shot at) and oh yes, oil.
Instability in the Middle East was the biggest worry for most energy traders on Friday. Troops in Bahrain confronted thousands of protesters calling for an end to the country’s monarchy. In Libya, Moammar Gaddafi’s regime deployed security forces and warned citizens against joining the unrest in which dozens of protesters have been killed. Protests also continued in Yemen for an eighth day.
As one person said, “Right now, I think the Middle East news trumps all when it comes to fuel prices.” Meanwhile we keep seeing diesel fuel prices climb and gas prices too. Our fuel card receipts look like mortgage payments. Our fleet management budget is blowing up and it’s only the middle of February. And for some fleet companies they have already seen what $3.60 diesel fuel prices will do to driver that they trust. Yes, fueling thefts are on the rise. Just Google them and you can find that now more than ever, your fleet card controls and fueling audits better remain strong or get strong quick.
We have seen from one fuel card provide sending duplicate fueling transactions from their mobile fueling suppliers. Is it an increase in fleet fueling being purchased or is there a lack of fuel management systems in place at the fuel card company. Needless to say, if you get mobile fueling and its processed through a fuel card service look hard at your fueling invoices, you might see the same mobile fueling transactions pop up twice, like the price of fleet fueling isn’t bad enough to stop you from fuel savings.
Until next time, if you’re a fleet manager and you’re not fully savvy to fuel management, it’s ok. It’s time to be a hero for your company. Stand up make a suggestion that you think under fleet management solutions, you have an idea, that idea is to hire a fleet fuel management firm of experts. Just a call away 267-482-6155.
Tags: diesel fuel prices, fleet fueling, Fleet Management, fuel card
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By Glen Sokolis - February 17th, 2011
Are you a fleet manager or fuel manager? Are you the president or CFO of a fleet company concerned about your company’s bottom line, again? Are you tired of sitting on the edge of your seat, sweating, worrying and waiting for the Department of Energy to report that diesel fuel prices are up per gallon for the nth week in a row? Accept the inevitable; diesel’s national average price will be what it will be. You can’t control it. It’s out of your hands. However, do not throw in the towel just yet. Take a deep breath, sit back in your chair, roll up your sleeves and empower yourself. Now is the time to gain control over those things that you CAN control. Be your own superhero. Help save your fleet management company. Save time. Save money.
No more feeling helpless, buried under tasks and maxed out on time. No more wondering IF your company’s current fleet fuel management programs are working, or WHY they aren’t. Yes, you are considered the fuel expert for your company, so make an executive decision and steer your company down the road to increased profits and decreased expenses. Reach out to industry fleet fueling experts that have the insight you need to optimize your programs. No more same old, same old. Fleet fuel experts have access to essential industry data and proven performance records that can put you back on track so you don’t have to hold your breath each week. Let the fuel prices do what they will do knowing that you have the power to put your company on solid ground.
A fleet fueling expert can perform a comprehensive analysis of your current fleet management programs and determine what fleet management approach is best for your fleet company’s vehicles. Detailed analysis can determine the best use of your fleet cards or fuel cards, whether truck stops, mobile fueling or onsite refueling is best for your fleet mobile fueling, and if your company would benefit from a fuel saving plan. They can even establish fuel auditing for all your fueling transactions that will raise red flags and stop losses due to theft or simply incorrect fuel charges.
You’re thinking, why would I consider the added expense of hiring a fuel expert when I’m looking to save money? Shouldn’t I, or one of my employees be able to come up with the cost-saving and income-generating policies already? Well, the fact is, at the end of the day, fuel experts can save a company three times as much as the cost of hiring one. And, fleet fueling experts micro-manage the situation for you so that you can focus on the big picture.
Fuel experts are dedicated to monitoring multiple industry variables for you. They build fleet management programs that are specific to your company. Stop wondering how you can do things differently, more profitably. Consult with a fleet fueling expert and start implementing a fuel management program that you can count on. It’s a win-win situation. You save your time and your company’s money. You look like a hero.
Tags: Department of Energy, diesel fuel prices, Fleet Management, fuel audit, Fuel Management
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By Glen Sokolis - February 14th, 2011
The Department of Energy (DOE) just released diesel fuel pricing data that has diesel fuel prices rising for the 10th straight week jumping 7.5 cents to $3.513. It’s the largest increase since December 6, 2010 early in this rise of fleet fueling prices for trucking. This increase puts the diesel fuel price 74.4 cents higher than this same time last year. Is there any good news in the fuel management world or is everything glum?
Well, some good news is that crude oil prices have come down over the past week. Things have settled a little bit in Egypt and it usually takes a solid week or two before diesel fuel prices catch up at retail locations as compared to the open market. In a nutshell, if nothing crazy happens, your diesel fuel prices should be going down to that $3.40 level soon. I know, it’s not great, but it’s still better than $3.513 for fleet fueling this week.
The key right now to most of your fuel management solutions is to get to the core of your fueling programs. If you feel like your fleet company’s understanding might not be up to par, then it’s time for a fuel analysis on the who, what, where, how and why of your fuel management.
Who?: Who is the person in your fleet company’s organization that really has his finger on this? Is it you? Is it the fleet manager? Fuel manager? (Maybe in title only.) Fleet fuel manager? Director? Or maybe, it’s really no one at all.
What?: As in– what does your fleet fueling program look like? “What does that mean?” you might ask. Do you have as many fleet cards or fuel card companies as you do locations? Are you using mobile fueling and not sure why? Or, do you think you should be using mobile fueling but don’t know how to do it? Do you have a fuel saving plan as part of the program?
Where?: Where do your trucks go to buy diesel fuel? Are you using truck stops, card locks or do you have a mobile fueling company coming on location to fuel your trucks where they are parked? How do you know what fleet management approach is best for your fleet company’s vehicles?
How?: How are you going to improve your diesel fuel buying if you already believe you are buying well? Another question is how do you know that you really are buying well? Who told you that? How can you be certain? How do your fueling purchases compare against other fleet companies? How are you going to change your fuel management system? It’s hard and even though it’s a big expense item most companies usually push it to the back burner. How do your fuel cards or fleet cards work? How is the fuel auditing being done on all your fueling transactions?
Why?: Why are diesel fuel additives so expensive? Why does your fleet credit card charge a fee? Why does your fuel inventory never match at the end of the month? Why don’t you see fuel savings when your fleet management keeps putting new fuel management systems in place?
These are very important questions that most fleet managers or someone in your organization should really be looking at. As I have said before, and it might sound crazy, but we talk with more companies that need our help than don’t need help. Most of us have heard the expression that a little knowledge is a dangerous thing. This is diesel fuel buying we are talking about. It’s not time to be dangerous, its time to be smart. Increase your knowledge and get the answers to your questions. There is safe ground to stand on and you can improve your company’s bottom line. Consult with a fleet fueling expert and start implementing a fuel management program that you can count on.
Tags: diesel fuel prices, fleet fuel cards, fleet fueling, Fleet Management, Fuel Management, fuel management systems
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By Joan Gottlieb - February 6th, 2011
Escalating diesel fuel prices in the news are as common today as predications of upcoming winter storms. Both can take a bite out of your business. Customer cancellations, loss of production time, maintaining equipment, operating your fleet to its full potential are all contributors of ol’ man winter.
Some may joke that the only profitable business during a snowstorm is the one with a plow. But are the profits being eaten by the cost to fueling their fleet.
Just as many major cities have surpassed their snow removal budgets, many fleet management programs are undoubtedly feeling the squeeze from raising diesel fuel costs.
Keep your business running by driving down fleet fueling cost. Sokolis Group is a fuel management company dedicated to reducing fueling expense. Sokolis Group will work with you hands on to get your fleet fuel planning implemented and tailored to your needs.
Our relationships with scores of fuel vendors, fuel cards, fleet card and fuel companies allow us to leverage the best possible diesel fuel price agreement. We manage fueling vendors closely to ensue consistent pricing, quality service, and competitive diesel fuel pricing for you.
Don’t get left out in the cold. Call Sokolis Group to discuss fleet fuel planning with our experienced fleet fueling consultants. 267.482.6155 www.Sokolisgroup.com
Tags: diesel fuel prices, fleet fueling, fuel planning
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By Glen Sokolis - February 4th, 2011
Yes, we all know diesel fuel prices are killing your fleet management budget. For you fleet managers, diesel fuel prices are just hitting your fleet fueling costs it is also starting to increase other costs associated with petroleum products. Bridgestone Tire for example just increased a 12% increase in fleet companies tire cost effective immediately. Why? Increased costs in raw materials and energy costs that is leading the way to your fleet management programs costing you more to get the tires rolling down the highway.
What else can a fleet manager expect with increasing diesel fuel prices and how it will affect their fleet management solutions to lower prices? Here is a short list:
- Diesel fuel prices will remain at the levels they are or more than likely go higher during the year. Most fuel analysis believe we will see fleet fueling prices at a nationwide level above $3.60. Things that you could do to lessen that blow would be a fuel management system through an outsourced fuel management company. A closer review of fuel cards, mobile fueling, fleet cards, fuel inventory management, fleet credit card services to name a few.
- Diesel fuel additives will also increase since most raw materials that go into diesel fuel additives are from petroleum products plus the increased costs in delivery. To help reduce some of your increases in diesel fuel additive now, would be order now before costs dramatically increase, order a larger supply so you can keep your freight rates lower in bulk. Find out about prepay discounts.
- Motor oil and lubes are directly affected by crude oil price and your fleet management programs. Try to use synthetic oils and lubes to reduce costs. It might increase your fleet management budget short term but you will reduce the number of oil changes, plus reduce the freight cost to have the products brought to you and taken away. Those companies fueling costs are going up as well.
- Tires as we mentioned. Look to keep them properly inflated. That does mean fleet managers to have driver bang on the tires with a mallet. Spend the money and provide each fleet companies truck with a tire pressure gauge. Make checking the tire pressure on all of the tires part of the routine. Depending on how low your tire pressure is you can be throwing fuel savings right out the window. Make it each for the driver to put air in the truck tires. If it is difficult for them to do it, there is a good chance it’s not going to get done.
- Front end alignments will increase your fleet management costs? Every fleet manager that is reading this is saying what, how is the increase in diesel fuel prices going to cost my fleet management services more money because we have to fix front end alignments. Simple! Asphalt. Have you seen the snow, ice, sleet and extra cold weather we have had over this winter? State and Local fleet management road crews have been throwing salt down like crazy to protect us while we drive. This salt and cold weather creates pot holes. The way to fix a pot hole is asphalt. Asphalt is made with petroleum product from crude oil. Almost all states and local governments fleet management programs for winter are over budget, so as we slide into Spring (whenever that might be, according to the groundhog and early spring) these fleet managers who were probably given less money than needed and now are over budget will have to repair pot holes with asphalt. Expensive asphalt. Drive carefully there goes another front end.
As with a difficult winter, I think we are in for a tough year for fleet fueling. The best way to take care of your fleet companies, fleet management is to be proactive. Look over your current fuel savings plans. Figure out how is the best way to control your fuel management costs. Who is best on your staff to head a special task force to ensure fuel savings is taking place and not being wasted. On one last note, high fueling costs mean higher diesel fuel thefts. Review your fuel inventory management, your fuel card – fleet card set ups, your mobile fueling companies invoices and fuel analysis on all fueling transactions. Don’t let your company be taken by fleet fueling theft. 80% of all fueling theft comes from those that work for you. Have your fuel management systems in place. 267-482-6155 for more fueling help.
Sokolis Group will help your fuel management program get to where your company deserves it should be.
Tags: diesel fuel prices, fleet fuel, fleet fueling, Fleet Management, fleet managers, fuel savings
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By Sokolis Group - January 31st, 2011
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.
Tags: diesel fuel prices, fleet cards, fleet fueling, Fleet Management, fleet managers, Fuel Management, fuel savings, fuel theft, mobile fueling
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By Conor Proud - January 28th, 2011
To use synthetic or not, that is the question. I would say the answer is it depends on your fleets wants and needs. Like any product, over time it will or should get better just because of new technology and knowledge that comes along.
Synthetic is said to boost your fleet’s mpg up to 3%! That right there is enough to catch a fleet managers attention. Diesel fuel is always a large and important cost of any fleet fuel manager, and this lessens that cost and frequency of stopping. This is even more important as diesel fuel prices are continuing to rise.
Another quality that might have your fleet manager interested is the ease on start up. The oil is designed to keep your engine starting in temperatures ranging from below 22 degrees all the way up to 122 degrees Fahrenheit. What this does for your fleet is keep maintenance costs down and lengthens equipment life. The lowest operation temperature for regular oil is said to be about 15 degrees Fahrenheit. That advantage for synthetic is not only about 37 degrees colder, but this also reduces stress on starters and batteries.
So like I said earlier the decision on whether or not synthetic is right for your fleet might depend on your situation. If your fleet operates in extremely cold or hot weather it seems to be an obvious choice to use synthetic oil. As far as boosting your miles per gallon it might need to be tested by your fleet to see if that holds true.
Tags: diesel fuel prices, Fleet Management
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By Glen Sokolis - January 25th, 2011
It really takes simple math as anything goes up in price it becomes more valuable to steal so as diesel fuel prices have made it almost 60 cents higher than this time last year, the theft of peoples fleet fueling has gone up. Diesel fuel price over $3.40 a gallon have caused increase fueling theft, not to the levels of a couple of years ago but the fleet fueling price isn’t that high yet…
Go on Google news, put in diesel fuel prices, diesel fuel thefts, gas stolen, fueling stolen and you will see in the last few weeks there has been an increase that only fueling theft could like. Who is stealing this fleet fuel out of your fuel management budget? Well, you don’t have to look far. In most cases it’s your own fleet companies employee who decided at $3.50 a gallon it was worth the risk in losing their job. How does someone who works for you steal diesel fuel from you? The list is almost endless. Their own fleet management controls that you can have in place to prevent or at least tip you off that our fuel saving are going out the lack of fuel management window.
Simple steps for controlling your fleet fueling and risk of fueling theft are:
- Fuel card, fleet card, fleet credit cards
- Knowing how to use these fueling cards to provide fleet management solutions
- There are fueling limits, checks and balances fuel cards and fleet cards have
- Your fleet manager, fuel manager or maybe an Outsourced fuel management company needs to review, line by line fueling transactions to ensure fuel analysis and no fueling theft
With diesel fuel prices high the fueling theft could come from your fueling company. The fuel companies might not be delivery what they are saying they delivered if you have bulk fueling or mobile fueling. This is why it is critical that mobile fueling has checks and balances and fuel audits in place. With bulk fueling you need fuel inventory management to make sure your fleet management program is working. As diesel fuel prices go higher so does diesel fuel additives and that to can be stolen right out from under your fleet companies operations. Diesel fuel additives need an inventory system or your fuel savings can be lost on them as well.
Tags: diesel fuel prices, fuel audit, mobile fueling
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By Lisa Hermann - January 24th, 2011
A major percentage of all problems with diesel fuel engines are related to fuel quality. Diesel fuel can sometimes vary from one shipment to another or from one area to another. Customers also switch from one fleet fueling vendor to another and suppliers sometimes change the fuel they are offering. The three things that vary the most in diesel fuel are cetane, weight and viscosity. Cetane is defined as the susceptibility of the fuel to self ignite. Cetane can influence both starting and combustion roughness of an engine.
The weight of the fuel or specific gravity plays a major role in the heat content of the fuel. Number 1 is a “lighter” grade while number 2 is “heavier” or weighs more per gallon. While the lighter fuel (#1) has a lower “cloud point” and may provide better starting in cold temperatures, the heavier fuel (#2) has better lubricating qualities and actually contains more heat units (BTU’s) per volume. Assuming the fuels are the same price, better fuel economy is obtained by using #2.
The third aspect of fuel to consider is viscosity. Since “lighter” (#1) fuel is less dense it becomes thinner when heated than the heavier #2 fuel. When this occurs more fuel begins to leak through the high pressure parts of the injection pump which actually causes the injection pump to pump less fuel. As the fuel temperature continues to increase, more fuel is lost through leakage and this results in a power loss of between 1% and 7%.
Taking all these things into consideration #2 diesel fuel is the best all around fuel for the diesel engine. Buying fuel from a reputable dealer is a good way to insure high quality fuel. The best ones seem to be places that move a lot of diesel fuel such as truck stops, etc. The only way to insure your fuel quality is to treat it yourself with a diesel fuel additives and since every tank may be different every tank will need to be treated. For more information on diesel fuel additives programs and fuel savings contact Sokolis Group at 267-482-6155 or on the web at www.sokolisgroup.com and let us work together on your fleet management system.
Tags: diesel fuel additives, diesel fuel prices
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By Glen Sokolis - January 19th, 2011
Diesel fuel prices rose for a seventh straight week, jumping 7.4 cents to $3.407 a gallon according the Department of Energy (DOE). The last time fleet companies paid this much for fleet fueling was
$3.482 on Oct. 20, 2008. Of course this is the national average for diesel fuel prices if you live in anywhere west of the Mississippi or you are buying your fleet fuel at a local gas station your fueling prices are way beyond this weeks numbers. Gasoline also rose, increasing 1.5 cents to $3.104 a gallon, also its seventh straight increase. It is at its highest level since it was $3.152 on Oct. 13, 2008. Do we see a trend on these fueling prices going up? I think we do. I would not expect diesel fuel prices to make as big as gains next week because crude oil has been hanging around $91 a barrel on the New York Mercantile Exchange. There is always a lag between what crude oil prices do and what gas prices and diesel fuel prices do at the retail fueling level.
This is a questions that I have been getting a lot lately where is the fueling prices going to go. I think its pretty straight forward and its higher. The DOE and the projections of $3.40 for the year could happen for diesel fuel prices but I wouldn’t bet on it. The question I ask back to our non clients is what are you doing for your fuel management? Do you have a strategy or are you going to blow your fleet management budget in the first couple of months of the year.
What we do for our outsource fuel management clients is we keep them in the game. We have strategies for the fuel management system as part of the fleet management. Most of you reading this article are probably a VP, Director, Fleet Manager or Fuel Manager. You have been around fleet companies for more than 10 years and you’re between 45-55 years old. An outsourced fuel management solution might not be something that you have done before. It’s understandable why you might have concerns that your not going to get the fuel savings that you hope for or may need. Restasured that you won’t be the first private, public or fleet companies that uses us.
We are moving into times that are very different when all of our careers were younger. Technology, global economy, China will all play a part in fleet management program. Your fuel savings will be best achieved by having a fuel management system put together to ensure your fuel card, fleet card, mobile fueling is giving your company what it should be providing, fuel savings. Like most companies fleet management or just thoughts in general is your doing it well when it comes to fueling. You might be. You might not be. Isn’t worth a discussion about fuel management now at $3.40 before it’s $3.80 for diesel fuel. We have had clients come on in October when it was $3.00 for fleet fueling. There fleet fueling cost has increase over the last 3 months but not by 40 cents per gallon. We made sure they were given fleet management solutions to lower costs. Fueling audits so they were being overcharge, just be charged a fair fueling rate with their fuel cards, fleet card or mobile fueling.
Or provided they with better locations to for fueling that didn’t take their trucks out of route. Mobile fueling so they could lower drivers cost if they couldn’t totally control diesel fuel prices. Integration of fuel management data so no fraud, theft could take place and as important fuel budgeting could take place more easily because after all, if fleet fueling prices keep going up, revised budgets to management will be a bigger priority. Until next time, give me a call 267 482 6160, your fuel management system budget will love you for it.
Tags: diesel fuel prices, Fleet Management, fuel analysis, fuel audit, Fuel Management
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