Posts Tagged ‘fleet fueling’
By Laura Owens - February 3rd, 2011
We are all looking for ways to save money, especially with fueling prices on the rise. Hybrid vehicles are one way fleet management is turning towards to save money on fleet fueling costs. But how do you know if hybrid vehicles are right for your fleet companies operation?
Deciding whether or not to invest in hybrid trucks for your fleet management comes down to the type of routes your vehicles travel and the average speed of the vehicles. In order to achieve the maximize savings and emission reduction from a hybrid vehicle you have to make sure your vehicles driving habits fit the bill for your fleet management solutions.
The perfect match for a hybrid vehicle is if the vehicle will be engaged in a lot of short range, start and stop driving under low average speeds and have a high level of engine idle time. If the vehicle spends over 50% of its operating time at steady highway speeds, then a hybrid vehicle is NOT right for your fleet companies operations. The reason for this is the diesel fuel engine in a hybrid truck must power the vehicle at highway speeds, but the way you save the most diesel fuel is when the hybrid is being powered solely by the electric motor and batteries, this is when it is completely disengaged from the diesel fuel engine. A quick rule-of-thumb that can get you some immediate fueling savings is to take a look at the average speed across your routes and put the hybrids on the routes with the lowest average speeds.
Give us a call 267-482-6155 or visit us at www.sokolisgroup.com and learn ways Sokolis Group can help your fleet management services save money.
Tags: fleet fueling, Fleet Management
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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 Sokolis Group - January 12th, 2011
The Department of Energy continued to boost its projected price of diesel fuel prices, saying it will average $3.40 this year — a jump of 17 cents from its forecast last month. We know or at least we should know by now that the DOE projections on fleet fueling costs are always lower and sometimes much lower than what our fueling expectation are for diesel fuel prices. The $3.40 projection is an increase from $2.99 average last year, DOE said in its monthly short-term energy outlook released Tuesday. The price will climb to an average $3.52 for diesel fuel prices in 2012, DOE said.
Gasoline also will increase, to an average $3.17 this year, also up 17 cents from last month’s forecast. That’s up from a $2.78 average last year, DOE said, and the motor fueling will rise to average $3.29 next year. “Rising crude oil prices are the primary reason for higher retail prices, but higher gasoline and distillate refining margins are also expected to contribute to higher retail prices,” the report said. Most fleet management budgets will be shocked by the $3.40 diesel fuel prices but I think the DOE could be off 10% for fleet fueling raising that number closer to the $3.70 range. Taking the right steps now with your fuel management system will help your fuel savings and fleet management concerns later.
Listen, if you didn’t do a fueling hedge a couple of months ago, you still can but most fleet companies won’t because they feel they are complex and a risk. With that said, we don’t necessary agree that having some of your fueling in a hedge or a fueling collar or call is bad. If you don’t have them in place as part of your fleet management solutions or aren’t going to put them in place, then your diesel fuel prices will be going up. The question is by how much? Does your fleet manager understand the fueling market? Do you think your company has full control of your fleet fueling or do you need some fleet fuel management help? If you think you need help, think of it this way. If you boat has a leak, you would get it fixed, you wouldn’t wait until you had to pull out the life preservers. Would you really want to do that same sort of thing with your fueling budget that for most fleet companies represents one of the largest expenses on the profit and loss statement?
The answer is no of course you don’t want your fleet management budget or fuel management waiting after the fact. Will you? Will you? Fuel cards, fleet cards, mobile fueling, fuel audits do you have the staff, the time to make sure when your diesel fuel prices go up they are being watched and helping your control the increases.
With these diesel fuel prices going higher, it can certainly hurt the economic recovery that the country is currently happening. Upcoming blogs. Is OPEC the bad guy? Do you need diesel fuel additives in cold weather?
Tags: diesel fuel prices, fleet fueling, Fuel Management, Sokoils Group
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By Lisa Hermann - January 7th, 2011
Do you know of any company raising their prices 16% in 2011? Are you kidding me? Most fleet companies are fighting to keep prices flat so they can retain their ever dwindling customer base. If gas prices keep soaring out of control, how is it going to be possible to make a profit in 2011?
According to AAA, average gas prices nationally topped $3 a gallon late last week, up 16 percent from $2.58 a year ago. In 2008, a gallon averaged just $1.60. The average price for a gallon of regular gasoline has jumped more than 30 cents since Labor Day!
If your business relies on rubber hitting the road, whether it’s fleet management, simple fuel companies delivery service or a mobile fueling service company ROI is important to you.
TOP 5 REASONS TO HAVE SOKOLIS GROUP, FUEL MANAGEMENT & FUEL CONSULTING ON YOUR TEAM IN 2011:
1. Reduce Fleet Fueling Costs: Have Sokolis Group negotiate fueling deals with your fuel card or fleet card program for either your over the road purchases or truck to truck mobile fueling vendors. Then we will continue to track your drivers to make sure they are utilizing your “network” providers for greater fuel savings.
2. Reduce Operating Costs: Allow Sokolis Group to handle your fuel cards, fleet cards, fleet credit card program and maintenance to reduce your back office expense. Let us streamline your purchases for your fleet fueling program and track down credits when owed.
3. Reduce Fuel Theft Costs: Sokolis Group will continue to fueling audits on your fleet fueling purchases to make sure there are no fuel theft purchases occurring no matter what means of fueling. Reporting this to your managers for follow up procedures. Reporting same day deliveries along with tracking your MPG per unit.
4. Increase Confidence: Sokolis Group will coordinate and get fueling when you need it when you need it, freeing you from scheduling hassles and fueling related overtime. This will be done by our outstanding account managers, who will make sure all of your mobile fueling, fleet cards, fuel cards and fleet fuel cards are working for you
5. On Going Fleet Fuel Support: Sokolis Group is able for all of your fueling needs. Continuous fuel planning, monitoring and reporting. On-going communication with your team along with monthly reporting.
Wouldn’t it be nice to know when it comes to your fuel management, you have a staff of people working for you and montioring diesel fuel prices, mobile fueling costs, fuel cards, fleet cards and providing you fuel savings.
Tags: fleet fueling, Fuel Management, Sokoils Group
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By Glen Sokolis - December 29th, 2010
As we have been saying for weeks hold on to your hats because diesel fuel prices will be going higher. Fleet companies main source of fueling is going higher for fuel companies and everyone. Diesel fuel prices will finish the year at $3.294 a gallon based on the DOE records. We believe diesel fuel prices will start 2011 even higher. Right now your fleet manager and fuel manager should be going to executives and say, we are worried that we under forecasted diesel fuel prices for 2011. I know 2011 didn’t even start yet but when I hear a good friend of mine Joe Petrowski, CEO of Gulf Oil on CNBC the other day saying by sometime in January he believe crude oil will be over $100 a barrel and that there is a 25% chance that crude oil will trade over $150 a barrel by Memorial Day. You better stand up and listen. Joe is very smart and just like he said in the interview, higher gas prices or diesel fuel prices does not serve his company or the country any good.
We recall 2008 when crude oil reached $147 a barrel. DOE national diesel fuel prices $4.76 a gallon and gas prices were way over $4.00 it stunk for fleet companies, consumers, fuel management, fleet managers, fleet management services, fleet fueling and just about anything that had to do with fueling except fuel cards. Fuel card, fleet card, fleet fuel cards, fleet credit card services they cleaned up during that time. Higher diesel fuel prices and gas prices are great for fuel cards because they make their money off of interchange fees on the cost of fueling, therefore the higher fuel companies are charging you the more money they are making. There is risk, clearly higher fueling prices and higher prices for diesel fuel additives mean more of a chance of a company paying slow or going out of business.
There is no real fuel savings as part of your fleet management when prices get that high. Sure with fuel management system and fleet management solutions you can cut some fueling costs but if your fueling budget was $3.25 and diesel fuel prices are $4.75 as a fleet manager you have clearly missed your mark. This is not a panic and run article, this is a wake up and listen to someone that knows about fuel management and might be able to help your fleet management programs. Yes, we are talking about mobile fueling, fleet cards, fleet fueling, fleet card services, fuel cards but we are also talking about market fundamentals.
Market fundamentals like why every major commodity has grown leaps and bounds this year but not crude oil. China has 1.4 billion people consuming more fuel each day. The U.S. demand for gas is flat but diesel fuel usage is growing. Now is the time to review not March when it could start to be too late to have a solid fuel management program in place.
Tags: diesel fuel prices, fleet fueling, fuel card, Fuel Management
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By Sokolis Group - December 25th, 2010
I know diesel fuel prices that is all we talk about lately but we aren’t the only ones talking about fueling. In FleetOwner, Sean Kilcarr wrote this below about diesel fuel prices.
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.
Tags: diesel fuel prices, fleet fuel, fleet fueling, fuel audit, mobile fueling
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By Sokolis Group - December 21st, 2010
If you are a Fleet Manager, CFO, President, Owner or Purchasing Department you must have a comprehensive approach to fuel management. Yes, fuel costs are lower now than 2 years ago but they won’t always be and even if they are lower, doesn’t your company deserve a program that provides security of supply and improved economics of your fuel buying? Don’t spend your fleet companies money on extra diesel fuel prices that your fuel companies might be charging you.
Six keys areas should be examined.
- Spend analysis – determine market by market, site by site
- Benchmarking – baseline and compare to published market metrics and establish industry best practices
- Supply strategy – a proper balance of supply security with cost, margin and service contracting- coordinate operations, accounting, legal and safety teams to maximize opportunity.
- Execution – having a playbook is one thing but making sure the plays actually get made is another.
- Audit – all bills, invoices and transactions need to be completely reviewed. Companies make mistakes sometimes. Also, industry statistics say 81% of all fuel stolen is from within your own company.
Now that you have the basics go ahead and save your company money. Need more help? Don’t understand or have the time to dig into this kind of project?
Let Sokolis Group’s fuel management and fuel consulting team help. We have saved companies tens of thousands of dollars a year to over a million dollars a year. We are professional in fuel management, negotiations, auditing, fuel card maintenance and determining what type of fleet fueling program will save your company the most money. Is it better bulk fuel buying? Fuel cards, truck stop or card lock rates or mobile fueling? Lower your diesel fuel prices today!
Visit us on the web at www.SokolisGroup.com or call (267) 482-6160
Tags: diesel fuel prices, fleet companies, fleet fueling, fuel card, fuel companies, Fuel Management, mobile fueling
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By Sokolis Group - December 20th, 2010
With 2010 diesel fuel prices ending strong and future oil demands on the rise. Here we could be going again from an article written by Jeff Cox.
Since then, crude has found some sense of equilibrium, wading now in the $80-$90 range but after a healthy 13 percent gain for the year. The global growth story, along with weakness in the US dollar, is likely to put more upward pressure on oil prices ahead, driving a variety of opportunities for investors to capitalize.
“We have been bullish on energy stocks, and an improving trend for crude oil prices may provide further support for higher prices in the stocks,” BofA technical research analyst MaryAnn Bartels wrote in a research note for clients. “The technicals for crude oil are bullish and we can project a measured move to $118-120. We continue to recommend exposure to the energy sector across all groups.”
At $100 oil prices, we are looking at diesel fuel prices to be $3.50 nationally. If crude oil goes to the $118 to $120 range we over $4.00 a gallon for diesel fuel prices. Your fleet fueling costs are ready to take a jump according to all of the major players. An increase in diesel fuel prices will also cause diesel fuel additives to increase and of coarse your fuel card or fleet card will be breaking limits at those kinds of numbers. Mobile fueling will be at a premium because supply for drivers is starting to get tight and with the new laws on the books, fleet companies are going to want their drivers, driving and not fueling, even if it might provide them some fuel savings. Mobile fueling will make it easier to keep fleet companies drivers hours down.
I know sometime as a fuel management company, we get poked by fleet managers -fuel managers that we are saying the sky is falling. As a company that cares about fleet management and cares that fueling costs don’t go crazy, this is not coming from Sokolis Group. Right now their is a way in the market, just like the stock market keeps going up, diesel fuel prices are going to go up according to this report.
The best thing is to be proactive. If you can change your fueling budget for next year, increase your fueling cost by a little. Reach out to your fuel card -fleet card company and get an increase in credit now before diesel fuel prices go up. Do the same if you have a mobile fueling provider. Keep fleet fueling cost low by putting money saving and fuel saving strategies in place. Don’t throw over the life raft after the ship has sunk.
Tags: diesel fuel prices, fleet fueling
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By Sokolis Group - December 19th, 2010
U.S. retail diesel fuel prices have sold at a premium over gas throughout 2010, and petroleum market watchers said global competition for the fleet companies main fueling likely means that will not change any time soon not matter what mode your buying fuel cards, mobile fueling, fleet cards in your fuel management.
“There’s really one reason” for the spread, said Tancred Lidderdale, a Department of Energy economist. “The global demand for distillates fleet fueling is rising faster than global demand for gas prices.”
Last week, the U.S. retail diesel fuel prices average was 23.9 cents higher than the gas price average. The spread narrowed significantly from just one week earlier as gas rose far faster than diesel fuel prices, DOE reported.
The highest diesel fuel prices premium so far this year came on Nov. 29, when diesel fuel prices were 30.6 cents a gallon more expensive than gas prices. Decades ago, diesel fuel prices were a refinery byproduct and reliably much cheaper than gas. Each successive federal cap on sulfur content for diesel fuel prices resulted in higher refiner, fuel companies costs that got passed down the line to fleet companies causing fleet managers headaches.
Now, DOE data show, retail diesel fuel prices is almost always more expensive than gas. Mobile fueling cost for fleet fueling is also higher.
However, when DOE began its weekly survey of filling stations in 1994, diesel fuel prices and gas prices tracked one another quite closely. It was not until 1996 that DOE’s weekly survey reported diesel fuel prices were routinely higher than gasoline. The last time the diesel fuel prices average stayed below the gasoline average for more than two consecutive weeks was during the summer of 2009. Diesel fuel has not been cheaper than gas since August 2009 and might not be again since it is really the worlds fueling and not just the fleet fueling that it is used for in the U.S. Running fleet companies on their fuel cards for fleet fueling usually offers considerable fuel savings.
So far in 2010, the average spread between DOE’s weekly diesel fuel prices and gas average has been 20.7 cents a gallon, about in line with the agency’s 2010 estimate of 21 cents a gallon so there is a lot of fuel saving if you are buying gas.
The latest official DOE projection for the 2011 diesel premium is 23 cents a gallon.
Diesel is coveted both by developed nations and industrializing giants such as China. Imagine being a fleet manager in China and what your fuel management or fleet management program must look like to achieve fuel savings.
“In Europe or China, the growth in diesel fuel consumption is stronger and is expected to stay stronger than growth in gasoline consumption,” Lidderdale said.
DOE reported that distillate fueling exports for the week ended Dec. 2 were 777,000 barrels a day. That figure is unchanged from the prior four weeks, but it is more than 327,000 barrels a day higher fleet fueling than in the week ended June 4, the earliest period for which data were available.
Europe has more diesel cars than the U.S., and China’s economy is recovering from the recession so quickly that, according to the most recent DOE data, year-over-year growth in demand for oil in that country was close to, or equal to, U.S. demand growth in August and September. Imagine being a fleet manager in China overlooking your fuel management or fleet management solutions. Everyday your fleet companies business is growing like crazy. We don’t know what kind of fuel cards they use or if they have little mobile fueling trucks going around fleet fueling but it must be interesting.
In those months, DOE estimated that the U.S. petroleum market processed 750,000 and 900,000 barrels, respectively. That level of demand growth was “approaching, or even exceeding, growth levels seen in China,” DOE said.Chief among the domestic factors that contribute to the diesel premium are the United States’ ultra-low-sulfur diesel fuel requirement and rising demand for diesel fuel pricesfrom U.S. buyers.“Ever since we’ve gone to ULSD, that has always added to the premium,” said Flynn. Diesel fuel prices will continue to lead the way over gas prices. That is important to know if you want to achieve fuel savings. As fleet fueling prices raise so will mobile fueling, fuel card, fleet cards, fuel companies will look for over increases to offset their increase in diesel fuel prices for deliveries.
A solid fuel management system with a fuel management team will help to ensure your fleet companies operations are doing things right.
Tags: diesel fuel prices, fleet fueling, Fleet Management, Fuel Management, fuel savings, mobile fueling
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By Sokolis Group - December 17th, 2010
A crime that hit ATM machines over the past years is now hitting the fuel card industry. It is called white card fraud, in the fleet card business. Please warn your drivers. Here is how it works:
The criminal puts a device over the top of the fuel card reader at the pump. The device looks like an upgraded or more durable fleet credit card reader. It is not; actually it is a small computer that reads your fuel cards information after you’ve swiped it. Some of these devices can work with WI-FI signals so they can grab the fleet cards information as it happens. In most cases the criminal comes back after a few hours, takes the device and retains your fleet fuel card information. Once they have gathered all of the critical fuel credit card information they create a white credit fuel card and place all of the your information on as if it was their own and provides them with fuel card features from your fleet management.
With some of the better fleet card companies you may only get taken for 1 or 2 transactions per fleet card before the fleet credit card services hits its limits. With other fuel credit card you may be hit worse.
TIPS:
- Inform your drivers of what can happen to their fuel credit card, which will clearly cut out any fuel savings that could have had and hurt you fleet management.
- Have them look at the fleet cards swipe device at the pump before swiping. If it doesn’t look right inform the attendant at station or call the police before you have serious diesel fuel prices on your fleet fuel cards.
- Check each fleet card, fueling transactions for multiple fill ups daily for fuel companies usage.
- When using your fleet cards make sure you have additional prompts set up at the pump for your fleet credit card for fuel saving on the diesel fuel price. For example: Driver ID or Unit number that fleet managers know and that can limit fleet fuel card misusage by your driver or fuel companies.
Paying at the pump is still the best way to process transactions, just be cautious. This will help reduce fleet cards being used in the wrong way. It is also good for fleet companies to use diesel fuel additives to improve your mpg, fueling time, fuel savings and the best fleet management and fuel management system.
Tags: fleet fueling, Fleet Management, fuel card, Fuel Management
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