Posts Tagged ‘fleet fueling’
By Sokolis Group - January 9th, 2012
 Look at the chart on diesel fuel prices over the past 3 years. Tell me it’s not scary in trying to figure out where they are going to be next week, next month or 6 months from now. You can’t control what happens to drive diesel fuel prices all over the board. You can control the margin you pay?
Oh yes, you can. Whether the price was $4.71 a gallon or $2.09 or $3.92 a gallon, there was a profit margin that your fuel vendor made from your company. The fuel vendors margin changes all of the time. Would you like to have some control of a large spend like your fleet fueling? What is a fair and reasonable margin that you should be charged?
That would depend on a lot of factors. These would include how well do you understand diesel fuel prices? Who are your contacts in the fuel industry? How large is your fleet of vehicles and how much diesel fuel are you buying?
If I told you that most vendors can make more margin from you when diesel fuel prices were low than when they are high would you believe me? The fact is if you are not watching the market, reviewing indexes, auditing fuel invoices your company wouldn’t know if it is pay a penny to much a gallon or 50 cents to much a gallon. Really, would you know if the invoice is correct or if you believed you had a pricing deal that was over rack. What is rack? Is it the same rack every day? Do you get that rack price? So how do you know? We do know and we know what information is important so you get the best deal, pay a consistent low margin and we manage it for you every step of the way. From fuel audits, to price negotiations, overcharge credits and you don’t have to do a thing. Why?
At Sokolis Group we become part of your fuel department. Most companies can’t afford their own fuel department, heck most companies don’t have the time or expertise! We do and our clients love us for it because we save them thousands to tens of thousands of dollars per month in diesel fuel costs. They get reports, that are very easy to read and summarized. We even create new reports just for them because at the end of the day our clients, are our business.
Have you ever dealt with a fuel card company or large oil company that sold you on bells and whistles. Those bells and whistles are great if you can understand the reports they send you or they call you back in a timely fashion when you have an issue. After all, every company is going to have some sort of issue, it’s how you handle it that separates the great companies that you want as your vendor from the mediocre ones.
Call now…we are waiting to help you 267-482-6155 or send an email to sales@sokolisgroup.com.
Tags: diesel fuel prices, fleet fueling, fuel audit, fuel card
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By Sokolis Group - December 19th, 2011
Diesel fuel prices have fallen over the last couple of weeks. They have followed the trend by crude oil prices going lower but what will happen next. We have some crazy things going on that can affect your fleet fueling.
- Possible oil embargo talks against Iran
- North Korean leader is dead
- U.S. leaves Iraq
Any of these things going on at one time could make a fleet manager worry that pump prices will soon be taking off but all 3 at one time. It might be time to review your guide to fuel savings or better yet the special guide to diesel fuel prices not going to $5. Yes, I said $5 a gallon. I am not saying it’s going to happen but one never knows.
The thought of having and embargo against the #2 OPEC oil producer Iran is scary. The U.S. is putting itself out there with many other countries and trusting countries that aren’t always the most trustworthy. Let’s say these other OPEC and non OPEC countries can’t keep up with the daily production of Iran. The laws of supply and demand will surely kick in as will your diesel fuel cards credit limits.
North Korea you remember these people, the ones that the war is still not over for the last 40 years. Ok, maybe you remember them better as the country with nuclear weapons that always threaten to use them. New leader coming into office since the other leader died. What will that person be like; nice friendly or a crazy nut? Crazy nuts tend to make all world traded markets on edge. Stocks tend to go down and oil prices well, look toward the sky because that is where your diesel fuel prices would be heading.
It is great that the U.S. is finally able to leave Iraq. Iraq couldn’t take care of themselves while we were there what is it going to be like now that we left. Hold your guide to better fuel management or daily review of my fleet fueling costs. If Iraq can’t control their country your fleet management skills will truly be coming into play.
Think about this. What happens if we cut off Iran from selling fuel? Iraq can’t keep it together so Iran decides to mess with Iraq. Scary? Diesel fuel prices won’t be the only thing this fuel management guy will be thinking about.
Let’s all hope that it’s a safe and happy new year and all of this stuff will go the right direct. This way you can just call the Sokolis Group 267-482-6159 to help you lower your fueling costs.
Tags: diesel fuel prices, fleet fueling, fleet managers, Fuel Management, fuel savings, Sokoils Group
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By Sokolis Group - June 23rd, 2011
Look for your fleet fueling prices of diesel fuel prices and gas prices to take a turn down over the next couple of weeks. A lot of action is happening in the oil world. Fuel prices were falling several dollars a barrel already this week which is good news to your fuel management programs. Then what I believe was a little out of the blue, the U.S. Strategic Petroleum Reserve decides to release 60 million barrel of oil over the next 30 days to help reduce fuel prices. Wow! Lower diesel fuel prices please to meet you. For some companies this might be the difference between having a good year or having a poor year. A company’s fuel management solutions are usually the keep to help drive lower diesel fuel prices.
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.
Tags: diesel fuel prices, fleet fuel, fleet fueling, Fuel Management, mobile fueling
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By Glen Sokolis - May 18th, 2011
It’s really hard to believe that diesel fuel prices and gas prices are falling, especially if your local gas station hasn’t lowered prices yet. Ok, I realize that MOST of us have not seen the lower fleet fueling prices at the pump yet. This is basically because most retail locations are taking their time lowering their prices—and your fueling costs. But yesterday, in the fairly small town where I live, the price for gas at a low-cost retail station was down to $3.93 a gallon. A half mile away it was $4.09 a gallon, and half mile in the other direction it was $4.19 a gallon. Knowing the fueling market as well as I do I recognize that even that low-cost retail station is making a nice margin. The others are knocking it out of the park, but that isn’t good for consumers. Keep watching, prices will drop down near you soon, fueling costs will get better, trust me.
What is causing a dip in diesel fuel prices now, especially after prices went up 20 out of the past 22 weeks in a row? And, why now? It is unusual, especially for this time of year as we approach summer when prices tend to be on the rise. Let’s not forget our daily friend the gasman that we see the prices daily on roads and almost all of us have to see at least once a week for a fillup, those gas prices are falling too. The big question is why? And the answer is simple, but yet complicated.
As we look back for clues, remember that diesel fuel prices started their run of increases around November 29, 2010 when national DOE prices were $3.16 and a barrel of crude was $81.65. That was about the same time many of the large brokerage houses came out saying that crude oil was going to go over $100 a barrel. Uncertainty creates fear, but by the time we got to February 14, 2011 crude oil was still only at $83.66 a barrel. Diesel fuel prices had climbed to $3.54 based on supply needs for heating oil in the Northeast United States and China’s continued increased consumption. Then, all heck broke loose.
Fighting and political unrest in the Middle East scared investors who speculated that there would be interruptions in oil supply. Libya’s civil war created a very small supply issue. Fuel prices took off. In mid February the price per barrel was $83.66 and by April 29th it was up to $113.39. During that same time, the U.S. dollar went to one of its weakest levels in history. Investors were betting that fighting would continue in the Middle East that could create oil supply issues as we begin the summer driving season and the usual increased demand for gas. There is a lot of tension, speculation and fear.
Take a snapshot of today. By all accounts of market fundamentals, things look fine. The world’s largest oil producer Saudi Arabia h has committed to pick up any lost supply from other countries and stated that crude oil prices should be in the range of $80 to $90 a barrel. You, me and every other car-driving American have cut back on our gas purchases when they hit $4/gallon. The DOE shows 2.4% less gas being used this year than last year over the last four weeks. The U.S. dollar is getting stronger. Fighting continues in Libya, but the initial fears have gone away. We killed the most wanted man. And speculators woke up. Don’t poke the bear!
The sell off happened the first week of May and now with new trading policies on speculators we shouldn’t have crazy ups and downs. All great news, I can hear you saying, but your real question is why am I still paying so much if crude oil prices are down $15 dollars a barrel? Time. Give it a few weeks. As a very rough basic gauge: for every dollar crude oil goes down, diesel fuel prices and gas prices will go down between 2-3 cents per gallon.
Let’s not forget that Mr. Truckstop and Miss. Retail Station have been taking it on the chin the last several months so they are looking to hold onto some of that margin that is in the fuel pricing now. What goes up fast comes down slow. I would expect to see National DOE diesel fuel prices by July to be close to $3.75, maybe even less. It all depends on how long the retailers can hold their margin. Retail prices for gas should fall 35 cents over the next few weeks, but there will be retailers out there trying to hold onto every last penny.
Be smart and shop well. If you have any fuel management issues, feel free to reach out to us and we will walk you through.
Tags: diesel fuel prices, fleet fueling, fuel savings
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By Glen Sokolis - April 7th, 2011
We all know that fleet fueling prices have gone up. We see it everyday at the pump. We feel it in our wallets. But why? Is it because of supply and demand? Is it because of volatility in the Middle East? Just what exactly is driving diesel and gasoline prices higher? It’s simple. The way this fleet fueling professional sees it, it’s all because of a four-letter word that begins with F.
FEAR. And looking ahead, most people may be afraid that fuel prices will continue to increase. It is hard to predict just exactly where they are headed. But I’m going to go against the norm and say that fuel prices will go down. And I’ll tell you why.
Not knowing the certainty of what the future holds, we can look to our current and past trends for a glimpse of what may happen. Americans have been bullish on fuel since the middle of last year. There is always a demand for fleet fuel, but Americans are already slowing down on the amount of gas they are buying. In the past, experts have reported that when gas hits $4 a gallon, there is a psychological trigger for average Americans to change their buying habits. New statistics show that even at $3 a gallon people are driving less. So with current prices averaging about $3.50 a gallon, people are continuing to scale back their time behind the wheel. Less driving and fewer purchases at the pump leads to an increase in our domestic surplus. Keep in mind that the summer driving season is on its way and that means gas prices usually go up. I’ve also noticed that the amount of money being traded in the futures markets is about half of what it was a couple of weeks ago. This tells me that a lot of buyers looking for a quick upswing have enjoyed their upswing and are now getting out.
“Fear tends to manifest itself much more quickly than greed, so volatile markets tend to be on the downside. In up markets, volatility tends to gradually decline.” - Philip Roth, American Novelist
And, I’m not alone in the Fear-Factor-Theory. There has been a view amo aaam that the crude oil market has $10 to $30 built into it based on fear and speculation. As always, I will continue to monitor and analyze the global and domestic industry factors and modify views as information changes. With what we have in front of us now, I see crude oil going under $100 by the middle of April and down to the mid $90’s by May. This will drive down diesel fuel prices and gas prices. By the middle of the July when the summer driving season is already over from the refining and distribution perspective, I think we could see prices drop into the upper $80’s a barrel. This could bring prices back to $3.30 a gallon for diesel fuel and $3 a gallon for gasoline in most parts of the country.
Inventory numbers released on Wednesday by the Department of Energy show a build up in crude oil again and gains in diesel fuel while gas inventories went down slightly, but almost 1.9 million barrels less than expected. China tightening its monetary policy to try to curb inflation in that country is another sign of fueling demand possibly going down.
Trades, speculators, and investors…no one wants to be on the short side if more crazy things happen in the Middle East. I say, the Middle East is the Middle East. We’ve got fuel inventory, supply is not a problem. So stop worrying and get back to reality, prices will go down. Don’t be afraid!
They won’t stay down forever of course. In the real world, demand will pick up and supply at this point will have a hard time keeping up. But we are still six months away from that.
Be brave, be bold! It’s going to get better.
Tags: diesel fuel prices, fleet fueling
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By Glen Sokolis - February 27th, 2011
If you thought your fleet fueling was going to get cheaper because the spring weather is approaching, check again. Gas prices increased 17 cents last week alone. The national fueling cost for gas is $3.33 a gallon. Most don’t believe the worst is over. It might be time to pull out a pen and paper as a fleet manger and start redoing the old fueling budget for 2011.
This appears to be a very difficult year for a fleet managers and their fuel management budget. I would believe they every fleet manager is looking for some relief or a fuel managemet system to lower fleet fueling costs.
Due out Monday afternoon will be the DOE weekly diesel fuel prices. Most fuel companies predict diesel fuel prices will continue to climb over the next several weeks. The best most fleet management can do at this point is seek shelter. Protect their fleet companies buying process by reviewing current fleet fueling programs.
Yes, as a fuel management company we are going to tell you to review your fueling programs. Most fleet companies programs that we review have major issues and can be correct with the proper fuel management staff, fuel savings fresh ideas, discount fuel card programs and fleet cards that offer controls.
Gas prices up 17 cents for one week. Any guess how much diesel fuel prices will be up for the same one week?
Tags: diesel fuel prices, fleet fueling
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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 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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Look at the chart on diesel fuel prices over the past 3 years. Tell me it’s not scary in trying to figure out where they are going to be next week, next month or 6 months from now. You can’t control what happens to drive diesel fuel prices all over the board. You can control the margin you pay?