What could happen next?  I think we are going to see low to mid $80 a barrel for crude oil.  This will make all fuel managers happy because the pressure has been on those guys since diesel fuel prices started to increase.  Fuel savings over currrent levels should be enjoyed by all except the major oil companies.  It also is probably a good time to take a look at possibly hedging your diesel fuel price for the future.  Times might get good now but I don’t believe we will continue to enjoy lower fleet fueling prices for long.  Make sure your fuel manager is reviewing all details to put you in a winning position.  Your fuel management system should always be changing.

When was the last time your company reviewed its fleet fuel card, fuel cards, mobile fueling or fleet credit card.  If it hasn’t been in the last couple of months its time that someone in your company starts to look at this.  You need to be proactive and not reactive to fuel card changes, fleet fueling costs and fleet manager ideas.

Unfortunately, scrambling to react to increased fleet fuel costs and trying to make sense of an unprepared fleet fuel management program are not the only things out there that will make you sick these days. How about radiation and those poor people in Japan? This time last week, they were probably worried about the same things we are when it comes to fueling. Japan is the third largest consumer of oil. Like us, they had seen their fleet fueling costs increase because of the rising price of crude oil, diesel fuel and diesel fuel additives. My how 24 hours changed their view and the world dynamic.

Many fleet fueling programs are going off line along with so many other things. The Dow is down below 11,650 when just a couple of weeks ago it was over 12,350. That is a 6% drop. Throw into the mix that diesel fuel prices increased for 15 straight weeks, inflation keeps edging up, and the housing market is still down. And of course, as I’ve already mentioned, the volatile situation in the Middle East keeps us on the edge of our seat. Who knows what is going to happen there? I don’t. But, I do know that it will affect how much you charge on your fuel card. Thankfully the Saudi’s like us. “Like” might be a strong word, but they do “need” us and we need them. So I believe they will do everything possible to make sure fleet fuel continues to flow out of their country and into ours.

So the fuel keeps coming but we have to pay more for it. Did you know that not all fleet fuel companies are being affected the same by the gravity of all these global circumstances? There are fleet fuel managers who had the foresight to establish great fleet fuel management programs with fleet fuel experts. Their comprehensive, customized systems afford them the luxury of a buffer against the unknown. As a result, there are fleet fuel company presidents, CFO’s and managers out enjoying some green lager today while others are stuck at their desks, just green with envy. And you know who you are.

So on this sunny St. Patty’s Day, let’s hope that we all see a rainbow and a pot of gold at the end of it. After all gold is trading near an all time high.

Julian Hutton’s article The Power of Perseverance caught my eye as I was flipping through the February issue of Smart Business Philadelphia.  Hutton referenced the 19th century German philosopher Friedrich Nietzsche, “That which does not kill us makes us stronger.” And I thought, how true. But, a lot of people just don’t know how to get stronger and lack the tools to weather this economic storm.

Fleet fuel businesses that have solid foundations, are prepared and have strong leadership will survive. Hutton wrote, “Leadership is the single most important factor in any organization. It is the deciding factor between mediocrity and excellence, between success or failure.” How true. Now take a moment and look internally at your own company dynamics. If the corporate leaders and fuel managers at all levels do not have the necessary experience, know-how, or even the time, then the economic punches will always hurt. No need to raise the white flag and surrender just yet. You can survive. You can be stronger. And I can help you.

Consider this. Even if your business leaders are strong and smart, or perhaps you are even one of those excellent leaders; it may still be time to look at outsourcing your fleet fuel management. Outsourcing can maximize employee productivity and increase profitability. Maybe I’m saying something you already recognize; an outside fleet management company may have more time and resources than you and your company. Or, perhaps a light bulb just went on. Please keep reading, especially if you’re still unsure.

Reaching out for expert advice is not a sign of weakness. It is actually a sign of smart leadership. Outsourcing will give you access to a team of fleet fuel professionals who are focused on saving you money. They will be able to establish a custom fleet fuel delivery program that reduces scheduling hassles and lowers your fuel costs by strategically positioning fuel where you need it, when you need it. Their personalized programs can cut on-site and over-the-road fueling expenses through mobile fueling, Card Lock and Truck Stop programs.

A good fleet fuel management company should have a large vendor network and strong negotiating power in order to secure lower fuel prices than you could independently; giving you the huge benefit of even bigger fuel savings. From an administration perspective, the company can also implement custom back-office processes and technology improvements that will produce more significant savings. They can establish and perform fleet fuel audits that identify any pricing discrepancies and possible fuel theft. They actually put your own money back in your own pocket. Money you may not even realize you’ve been missing all along.

Once you acknowledge that it’s time to outsource your fleet fuel management, make sure the company has a tried and true track record of good client relationships; a team of focused, dedicated fuel experts; and fuel buying muscle. It is essential that you established good relationships with trusted experts in all aspects of your business.

Okay, I’ve offered you a lifeline. It’s time to strengthen the foundation of your business. No more just dodging punches. Time to be proactive and put external fleet fuel management systems in place that will immediately start helping your company’s performance. Be prepared and you will persevere.

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:

1. 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. 
2. 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.
3. 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.
4. 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.
5. 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.

Crude oil finished the week higher which means diesel fuel prices will go up causing a continued strain on fleet management.  Many believe the news for 2011 we be diesel fuel prices and gas prices and what thereincreasing fueling cost will do to the economy.  This week strong factory data lead diesel fuel prices higher, making some fleet companies question how their fuel management system will for controlling fuel savings stand up with increasing fueling costs.

Several fleet companies expressed concerns to Sokolis Group staff on what fuel management strategies we will be using to control fleet fueling costs. We were able to talk to fleet manager that their fleet management solutions were in very good hands. The continued communications we have with fuel companies, fleet cards, fuel cards, mobile fueling companies and fleet credit card services helps us position our clients with fuel savings or diesel fuel prices cost controls that might not otherwise be available to most fleet management programs.

Several new fleet companies have been calling inquiring about how they use their fleet card – fuel cards and is there potential to have more fuel savings if they switch fuel cards, fleet cards or fleet credit cards. As our fuel consulting team will explain those fuel savings depend on what fuel card or fleet cards they are using today. We try to provide fleet managers a clearer understanding just what their fuel management system could be up against and fuel cards or fleet cards alone might not be the full answer. With their fleet management programs they might need to consider mobile fueling, truck stop fuel, card lock fueling and frank conversation with their current fuel companies, fleet fueling, fuel card provider in efforts to reduce increasing fueling cost.

Until next time, think about your fuel management knowledge and ask yourself do you and your company has the right tools to be able to handle possible $4.00 diesel fuel prices? Listen if you don’t its ok. If you’re a fleet manager you don’t have the time or fuel management system tools. If your a Vice President or Director you need to step in now before your fueling budget is lost for the year and it’s only January.

U.S. diesel fuel prices continue to climb steadily higher this holiday season– driven up largely by perception rather than reality, according to experts. The average price for diesel fuel in the U.S. reached $3.248 per gallon this week, according to the Energy Information Administration (EIA). That’s  up nearly two cents from $3.231 per gallon during the week of Dec. 13 and up five cents from $3.197 two weeks ago.

However, Denton Cinquegrana, editor—West Coast Spots for the Oil Price Information Service (OPIS), told Fleet Owner that 90% of the current surge in diesel fuel prices is caused by  the mere perception global demand for diesel fuel is exceeding projected supplies.“The period between the Thanksgiving and Christmas/New Year holidays really is the ‘silly season’ when it comes to fuel and oil prices, because perceptions play a huge role in market dynamics right now; thus a lot of weird things happen,” Cinquegrana said.

For example, diesel price prices increases are occurring even though in its most recent short-term energy outlook,  EIA projected global oil consumption growth would slow to 1.4 million bb/d (barrels per day) in 2011– that after increasing some 2 million bbl/d this year.Among the countries that are members of the Organization for Economic Cooperation and Development (OECD) , only the U.S. is expected to show any significant growth in oil consumption volume in 2011, EIA said, and that will be by a paltry 200,000 bbl/d.

“That’s why it’s all about perception right now and why it seems the bullish prognosticators outweigh the forecasts of the bearish ones,” Cinquegrana said.California registered the highest diesel fuel pump prices in the U.S. this week, according to EIA, at $3.407 per gallon, followed by the Central Atlantic and New England regions ($3.381 and $3.375 per gallon, respectively).The Gulf Coast region currently has the lowest diesel prices in the nation at $3.183, the Lower Atlantic region is lose behind at $3.193.

One major concern with the recent uptick in diesel fuel prices is how it will impact municipal budgets in the U.S. over the first six months 2011, Cinquegrana noted. That’s because municipalities rely on a variety of vehicles to perform services, such as garbage trucks, buses and snow plows.“It will be interesting to see what kind of havoc higher [fuel] prices will wreak, as their [municipal] budgets are already strained,” he said.

I think Denton is correct to a point about perception with diesel fuel prices.  However what really makes stocks or gold raise and fall, it perceptions that people have a long with market data.  Fleet fueling is complex today it was announced that fueling inventory was down 5 million barrels compared to predictions.  This will make fleet companies or owners of fueling companies wonder is diesel fuel prices really heading to $4.00. 

The best thing a company can do when it comes to a commondity like diesel fuel prices and their business is to predict for the worst and hope for the best.  Have your fueling budget set at $3.75 a gallon.  Your fleet companies drivers will go out and use your fuel cards – fleet cards or get mobile fueling but at least you set you fueling budget at a fairly high number.  If diesel fuel prices don’t go up or your fuel management along with your fleet management are able to keep a control a little on what you are paying for fleet fueling then maybe your really ahead of the game.  If not, you won’t be that far behind the fueling budget becasue the record right around $5.00 a gallon. 

We have many fleet companies that are clients of Sokolis Group’s.  We tell them when to create a fueling budget.  Understand how much fleet fueling they are buying by gallons for each location they have.  Understand what mode of fueling they are buying that fleet fuel.  Is it mobile fueling, fleet card services, fuel cards or bulk fuel.  Review, do fuel audits.  The best way to save money on diesel fuel prices is to understand how much fueling you are doing and how the fueling is being provided.

Many lawmakers say that the trust fund has fallen short producing sufficient long-term revenue.

Currently lawmakers are debating proposing a 15cent per gallon increase in the federal gasoline tax to replenish the Transportation Trust Fund.

Currently, the federal fuel tax is 18.4 cents a gallon for gasoline and 24.4 cents for diesel. The last gasoline tax increase was in 1993. This proposal calls for the increase to begin in 2013. Gas fuel taxes would rise by one cent every three months beginning January 2013, until the 15-cent increase has been reached.

As a fleet fuel manager, relying on our transportation infrastructure, this fuel tax increase is unwelcome news. Some reports indicate that this fuel tax increase would not go very far in congress given the highly conservative nature of new congress.

The paperless desk:

Remove all paperwork from your desk – create files for your projects, reference folders for information you need to access regularly, a reading file for articles, reports, journals and FYI documents and a daily files for administrative, miscellaneous and day specific tasks. Keep your files on shelves or in drawers. The only thing on your desk at any point in time should be information relating to the task or project you are currently working on.

Stationery drawer:

Keep stationery in desk drawers rather than on your desk. Get rid of all clutter and keep your desk clear for essential items relating to the current piece of work you are doing.

Inspire yourself:

Surround yourself with positive images. Keep a photo or phrase that motivates you in view to remind you of and motivate you toward continually striving for your goals.

What are some of the things that work for you? Share with us…

When a fleet vehicle needs a tire replacement, occasionally you may find that only two tires need replacement rather than all four. Most people believe that the tires with the best tread should go on the front of the vehicle, especially for vehicles with front-wheel drive. Actually, the best tires should always go on the rear of front-wheel drive, rear-wheel drive and all-wheel drive vehicles. Why? The tires with best tread will naturally grip the road better and resist hydroplaning compared to a tire that has some miles on it.

Say you are driving on a curvy road in a summer thunderstorm and while you are in the middle of the curve your car enters a large area of standing water. If the best tires are on the rear of the vehicle, they will grip the pavement longer than the front tires. You will feel the front tires begin to lose traction and for most people, the natural instinct is to take your foot off the gas pedal to gain control by allowing the vehicle to slow. Unfortunately, if the best tires are on the front, the rear tires will lose traction first causing the rear of the vehicle to slide. In this situation, many people will not turn into the skid to regain control but turn against the skid. This causes the vehicle to spin out.

Good tires on your vehicle will help with your fuel usage. It will decrease how often you need to fuel your vehicle within your fleet. For more information and fuel savings, reach out to Sokolis Group at 267-482-6155 or via website at www.sokolisgroup.com.

1. Keep tires inflated properly
   • Underinflated tires waste fuel.  You should check tires on a regular basis.  This is simple and a potential lifesaver.
2. A well tuned engine burns less gas.
   • The right parts and fresh oil keep your engine running smoothly which requires less fuel.  Get regular tune-ups and inspections.
3. Get the junk out of the trunk.
   • Did you know that for every 250 pounds your engine carries the car loses about one mile per gallon?  So remove all the unnecessary items and carry only what you need.
4. Find the cheapest fuel
   • Ok so this one is at the pump.  Finding the cheapest fuel in your area can save you hundreds of dollars a year.
5. Don’t top off the tank
   • We should all listen to this advice.  Too much gas will just slosh or seep out so why waste the extra pennies? Those pennies do add up.
6. Drive intelligently and slower
   • By making fast starts or sudden stops you are just overexerting your engine which burns extra fuel.  Driving 55 mph instead of 65 mph can improve your fuel economy by two miles per gallon.
7. Avoid long warm-ups/cool downs.
   • On cold winter mornings or hot summer afternoons your car doesn’t take more than a minute to get ready to go, so don’t waste the extra fuel by letting it run for five minutes.
8. Combine errands into one trip
   • Before heading out you should plan your trip.  Come up with the most efficient route and combine errands into one trip if possible.
9. Tighten up the gas cap
   • Gas easily evaporates from the tank if it has a way to escape.  Make sure your gas cap is on tight and if it is loose buy a new one.
10. Buy a fuel efficient car
    • There are plenty of good options out there right now.  If you are in the market for a new car factor in long term fuel costs.

To find out more ways to save money on fuel contact Sokolis Group at 267-482-6155 and talk with one of your fuel specialist today.