Posts Tagged ‘fuel analysis’
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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By Sokolis Group - December 31st, 2010
Diesel Fuel Prices Will Raise, Use Fuel Management System Too Keep Fleet Fueling Control
Last day of twenty ten is here and diesel fuel prices have raised over the past few months, as a fleet manager, if you want to try and control your fleet management, have a solid fuel management program in place to control your fleet fueling prices. 2011 will not be an easy year for most fleet companies looking for fleet management solutions. All signs for an increase in diesel fuel prices are there and when fleet fueling costs increase so will diesel fuel additives. With fuel savings being possibly difficult to achieve, fleet fuel management, fleet credit card, fuel cards, fleet credit card services, mobile fueling all might be your best friend when it comes to fueling.
What can you do today to help your fleet management solutions for 2011, nothing? Relax it’s a holiday weekend and your fueling and fleet management issues will be there on Monday, January 3rd so spend sometime with the family and celebrate you made it through another year. Now Monday when you walk into the office it’s start to work hard over the next couple of weeks on your fuel management system and what fleet management services are going to be a priority for your fleet companies operations. If you’re a fleet manager, we think this is a good way to attack your fleet management programs.
- Review you’re your current fleet cards, fuel credit card, fleet card, fleet fuel card, fleet credit card services, fuel cards almost every fleet companies operations use one of these fleet management programs as part of its fuel savings plan.
- Review your fuel companies, mobile fueling, fleet fueling, and mobile fueling service these are fleet management services that are brought to your fleet companies and without your knowledge can increase your diesel fuel prices if you are not performing fuel audits.
After taking these fleet management actions, you should have a fair to good understanding where your fuel management system is at for 2011. If you, your fleet manager or fuel manager is not sure what are the next best fleet management services you should be taken, call Sokolis Group at 267-482-6155 we will be happy to help with fuel savings. If through your fuel analysis on your fleet fuel management program you found you need help with fuel cards, mobile fueling, diesel fuel additives, fleet cards, fuel card program you need to take action now. If the Sokolis Group isn’t going to be your fuel management direction, then you need to call your fuel companies fleet manager up and find out what diesel or gas margin they are charging your fleet companies operation. See if you can provide a fuel audit or have a fuel audit done for your company before approaching your mobile fueling, fleet fueling and fuel companies fleet fuel manager, you as a fleet manager will know if you have fuel savings or if your diesel fuel prices are higher than they should be. As you talk to your mobile fueling or fleet fueling supplier and they explain to you why your fuel savings aren’t as what you expect and explain to you that you are paying the correct diesel fuel prices, you as the fleet fuel manager for your fleet companies operation would know if your fuel companies be honest with you. If the mobile fueling company is being honest with you, its time to bring in a new fleet fueling company for better fuel management.
This same holds true for your diesel fuel cards, fleet cards, fleet credit card as part of your fleet management program. With proper fuel auditing, fuel analysis, fleet management consulting your company will know if the fuel card or fleet card company is giving you the best deal for your fleet management solutions. If you have bulk fueling, you are going to want to make sure your fuel inventory management is in solid shape for 2011. If your fleet fuel management does not have a good fuel inventory management program this is an area where fueling theft can take place cutting into your fuel savings.
The worse thing you can do for 2011 for your fuel management system to control diesel fuel prices is to do nothing. Sokolis Group has done fuel audits on hundreds of fleet companies from small companies to large Fortune 500 companies. We have yet to see fleet fueling by any of these companies to be flawless. They all could use fuel consulting help. If they all got a little fuel consulting, fleet management consulting help their fueling program and fuel savings would be well ahead of their competitors. With Twenty Eleven and diesel fuel prices looking to be stronger than in recent times, take consideration into the fact that your probably not a fuel management expert and if as a fleet manager you are, you probably don’t have enough time in your day to properly put solid fleet management in place and do all of the other fueling solution above. Happy New Year.
Tags: diesel fuel additives, diesel fuel prices, fleet managers, fuel analysis, fuel audit, mobile fueling, Sokoils Group
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By Sokolis Group - December 27th, 2010
That Is The Question.
What is hedging? It’s a financial instrument to buy something in the future at a given price. In this case, we are talking about fuel cost. Why would you want to purchase fuel today for the future? As this article is written, fuel prices are near a five year low. Could they get lower? Sure. Could fuel prices get higher? Bet on it. I am sure that you have heard the stories of how Southwest Airlines has done a terrific job with their fuel hedging program. They have a good fuel management program. It is a large part of what makes them profitable year in an year out. They take a large variable (fuel cost) off of the table when they manage their fuel cost by hedging. You still want to buy and manage your fuel program the best you can and hopefully with the Sokolis Group (click here for more information), but here is what a hedge might look like.
Your company budgets $3.75 a gallon for fuel. You don’t know, like any of the rest of us, if the price will go up or down over the next 12 months. You are able to buy a hedge (financial instrument) at $2.90 for the whole year. This means you will not pay more than $2.90 per gallon. There are several different tools that can be used to work around this, but basically your buying an insurance policy to protect your company from an accident. The accident being the price of fuel skyrocketing back the $4.75 a gallon. That would blow your budget out of the water.
Tags: fuel analysis, fuel hedging, fuel planning, fuel prices
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By John Sokolis - June 28th, 2010
At Sokolis Group, when we make initial contact with a potential client, through our research or a referral, we feel that we can be of assistance to them with their fleet fuel management program, therefore reducing diesel fuel cost. By gathering further operational information from a potential client we can make a pretty good assumption, through our experience, whether or not our fuel management service would be of value to them.
The next step is to offer a no cost, no obligation detailed fuel audit, evaluation, and analysis of their current fuel purchasing and fuel management system. This is where skepticism starts to build. Whether we are communicating with the CEO, COO, CFO, or the fleet managers, they may question the fact that a professional fleet fuel management company is offering this detailed analysis at no cost? What company does something for nothing? This is too good to be true. Why would Sokolis Group, a respected fuel management company offer something for nothing? Because more than 80% of the potential companies for which we perform this fuel analysis can significantly reduce their diesel fuel cost by engaging our services. This is not to say that 80% of companies are buying or managing fuel poorly, it just means it can be done better. Sure, some companies are basket cases, but many only need some refinement and fine tuning. A large company that can reduce its diesel fuel cost by one or two cents per gallon, can save potentially hundreds of thousands of dollars annually. The small and medium size companies, the private fleets, for which transportation is not their core business can potentially reduce their fleet fuel cost by as much as ten to twenty cents per gallon.
For those that take advantage of our no cost offer the end result can only be one of two scenarios. Either Sokolis Group has identified areas of opportunity to reduce fleet fuel cost, or the company is doing the best it can and they now have the peace of mind that their fuel management systems are effective. For those for whom we know improvements can be made we let them know what their potential savings will be by engaging our services. Once again, “too good to be true?” We can tell you this, it is good and it is true, so why not take advantage of our no cost offer. You will either gain the peace of mind that all is well with your fleet fuel management program, or your company will have a healthier bottom line by reducing your fleet fuel cost.
Tags: analysis, diesel fuel prices, fleet fuel cost, fuel analysis, fuel cost, Fuel Management
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By Glen Sokolis - April 9th, 2010
In fleet fueling there are many ways your employees can steal fuel from you. Most companies truly believe, it can’t happen to me. There theory is we have someone that spot checks that information sometimes. Our drivers make good money they would never risk losing their jobs. Why would anyone want to steal from us, we take care of our employees. When it comes to fleet fuel the fuel is liquid cash when it comes to stealing. Everyone would like to believe they know their employees well enough to think that person won’t steal but it happens.
Below is an article from the Baltimore Sun. The article is in black print, comments from the Sokolis Group are in red print.
Theft of city fuel admitted
Public works driver resold more than 100,000 gallons of diesel
By Robbie Whelan Baltimore Sun reporter
April 1, 2010
A former Baltimore public works employee has pleaded guilty to stealing more than 100,000 gallons of diesel fuel from the city and reselling it as part of a scheme that went unnoticed for a year and a half. (I can assure you that if they had a good fuel inventory control process in place this would have been caught within 2 months)
Maurice Boone, 45, was found out Jan. 5, 2009, by a Baltimore County police officer who saw Boone filling several 250-gallon storage tanks with city-purchased diesel at a warehouse on Sparrows Point Road. The officer observed Boone while investigating a car-theft ring.
According to court records, Boone told police and an investigator from the city inspector general’s office that the plot had been going on since 2007. The tractor-trailer operator would fill a city tanker from a pump at a landfill on Quarantine Road; make several rounds filling city vehicles as part of his job, then sell the remaining fuel for $1 a gallon to an associate named Jimmy, who would leave money for him at the warehouse rendezvous point. The associate was identified in court documents as James Wright, who is a co-defendant in the case. (At this point in time diesel fuel was selling for over $4.00 a gallon at retail locations. I believe they were selling the fuel for more like $2.00 a gallon.)
Boone pleaded guilty Monday and will receive a suspended eight-year sentence and five years’ probation, records show. He must also pay the city $187,000 in restitution, but Baltimore Circuit Judge Lynn K. Stewart delayed sentencing until July, a month after Wright’s scheduled trial. (The Sokolis Group has nothing against Mr. Boone except you won’t find us hiring him what we are confused about is 100,000 gallons at even $2.00 a gallon is over $200,000. The average price per gallon of fuel over this time period had to be close to $3.00.)
Boone’s lawyer, Marc Minkove, said his client – who was fired from his city job in March 2009 – will testify against Wright “if he’s summoned.”
A charging document pegs the total amount of diesel that Boone stole at 101,305.4 gallons, but public works officials said they weren’t sure of the precise number. A spokesperson for the state’s attorney’s office said that the losses may have totaled as much as $1 million, but that prosecutors were unable to document the extent of the theft because of insufficient paperwork. (If public works officials don’t know what the amount is as stated they don’t, it is much higher than 101,305.4. How did they come up with the 101,305.4? They say the extent may have been close to $1 million so even at $3.00 a gallon for diesel fuel like we said above that would be a theft of at least 333,333 gallons. As a fuel management company, we would believe that number of 333,333 is more like the real number of fleet fuel stolen. As a fuel manager someone should have had some fuel inventory records to catch this amount of fleet fuel leaving the fuel tanks.)
“From our end, we never knew how much fuel the guy was actually stealing,” said Robert Murrow, a DPW spokesman.
Murrow added that fuel prices were rising, so the agency did not notice the high cost of diesel invoices being charged to its office. (Sokolis Group agrees fleet fuel prices were rising but that has nothing to do with your fuel inventory and fuel management. Fuel inventory is just like any other inventory, goods come in and goods go out. If you have 500 gallons of fleet fuel delivered, you need to know which vehicles your fleet fuel went. If it only comes out to 450 gallons of fleet fuel and you don’t have 50 gallons of fuel still left in the fuel tank, you have a problem. The fleet fuel pricing going higher is a matter of fuel auditing to make sure you paid the correct fuel price for what you bought. Most fuel managers at companies since that job is just part of many jobs don’t do a very good job at it because they don’t have access to the proper data to be able to understand the fuel market trends.)
Diesel hit a historic high of $4.76 per gallon the week of July 14, 2008, before dropping to $2.01 six months later, according to Department of Energy statistics.
The City should be ashamed of this. When there are fuel management companies out there that can manage all of your fleet fuel buying, fuel auditing, and fleet fuel pricing and checking for a whole lot less than $1 million dollars. For a couple of thousand dollars of month they could have been well service in fuel management by Sokolis Group or some other fleet fuel management company. Who knows who else is or was stealing fleet fuel from them? They don’t track their fuel inventory, so it could be millions of gallons of diesel fuel that has been stolen. Maybe before Boone started to steal fleet fuel from them there was someone else that told Boone how to do it. Do you have someone stealing fleet fuel from you? Are you sure? Do you have solid fuel inventory records? How about the prices of fleet fuel are you paying what you should be or are your fuel prices higher than they should be? Do you know?
Tags: diesel fuel prices, fleet fuel, fleet fueling, free fuel audit, fuel analysis, fuel audit, fuel card, Fuel Management, fuel planning, Sokoils Group
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By Glen Sokolis - April 7th, 2010
The U.S. Environmental Protection Agency (EPA) revised its vehicle testing procedures in 2006 to help better reflect how people really drive in current conditions. The way you drive any vehicle affects how much fleet fuel you use, if you didn’t know. These new testing methods – whose results took effect with the 2008 model year – include factors such as high speeds, quick accelerations, air conditioning use and driving in cold temperatures. All of these items done incorrectly will cause your fuel management program havoc.
These revisions to EPA mileage estimates came after extensive real-world fuel economy testing by groups such as Consumers Union found that ratings were inaccurate, sometimes significantly. The old testing on fuel economy and fuel usage was taken place in ideal conditions in a simulated driving and not on the real street. Consumer Reports notes, however, that today’s mileage ratings are “more realistic”, although some drivers may notice they get a tad fewer miles per gallon than they may have anticipated. Still, noted Consumer Reports’ editor, the numbers are more accurate than they were previously.
Today’s EPA tests are designed to reflect typical driving conditions and driver behavior, but several factors can affect your own vehicle’s miles per gallon (MPG), including how and where you drive, the condition and maintenance of your vehicle, variations in the fleet fuel you buy, engine break-in and more. To be sure, the EPA ratings absolutely are a useful tool for comparing the fleet fuel economies of different vehicles, but do keep in mind they may not accurately predict the average MPG that you in particular will get every single day. Each day has different driving conditions for each driver, leading to different results in your fuel program.
Where to go for data
The U.S. Department of Energy (DOE) offers on its Web site a helpful list of mileage ratings for just about all of today’s vehicles. Visit: www.fueleconomy.gov/feg/findacar.htm. On the site you can do side-by-side comparisons of vehicle EPA mileage ratings, and narrow your search by car class, vehicle manufacturer, and MPG. No, they don’t really have anything for truck fleets because now we are throwing a lot more into the mix with loads and other variables. These tips will still help your fuel management program and certainly help your fleet fueling.
10 tips
The DOE’s Web site also offers the following tips to help you get maximum fleet fuel efficiency out of your vehicle.
- By resisting the urge to drive aggressively (e.g., speeding, rapid acceleration and braking), you can lower your gas or diesel mileage by an impressive 33 percent at highway speeds and by 5 percent around town. That will help all fleet fuel programs.
- While each vehicle reaches its optimal fuel economy at a different speed, mileage per gallon usually decreases rapidly at speeds of more than 60 mph. Notes the DOE, “You can assume that each 5 mph you drive over 60 mph is like paying an additional $0.24 per gallon for gas that costs $2.67 per gallon.”
- Don’t keep unnecessary items in your vehicle or on your roof rack. This is especially true of heavy items. Here’s why: An extra 100 pounds in your car or on your roof rack could reduce your MPG by 2 to 5 percent. This is especially important if you drive a small car, because the reduction is based on the percentage of extra weight relative to the vehicle’s weight. Heavy loads on your roof rack also will reduce the aerodynamic capability of your car. Whenever possible, use your vehicle’s interior cargo space. This is the truck with truck fleets too. The heavier the load the fewer miles per gallon you are going to get in your fleet fueling program.
- Don’t idle too long. Cars with larger engines typically waste more gas when idling than do vehicles with smaller engines, note DOE officials. This has become commonplace in the trucking world since diesel fuel prices went over $3.50 a gallon a couple of years ago. As a fuel consulting company, we have seen some companies go back to their old habits of letting idling happen. This is not good for your fleet fueling program, the environment increasing more CO2 into the air and your company’s bottom line.
- Using cruise control and your overdrive gears also saves gas and diesel fuel, as well as reduces wear on your engine.
- Combining your errands into one trip can save both time and gas. Several short trips started when your engine is cold may use twice as much fuel as a longer, multipurpose trip covering the same distance when the engine is warm. Proper routing of truck fleets can save a company over 25% on its fleet fuel and maybe more. As a fuel consulting company we have seen many companies that don’t properly route or control where their drivers go.
- Tuning you engine according to the specifications outlined in your owner’s manual can increase gas mileage by an average of 4 percent.
- Keep your tires properly inflated and aligned, thereby increasing mileage up to 3 percent. This also reduces your fleet fuel cost.
- Routinely check and replace your filters. Clogged air and fuel filters can decrease your diesel fuel and gas mileage by up to 10 percent. Seems simple and logical but some companies think by delaying routine maintenance they are saving money. They might be saving money in one pocket but it’s going right out their fleet fueling pocket.
- Driving in cold weather will reduce your gas and diesel mileage. It will also cost you more money in your diesel fuel trucks because of having to add fuel additive to your tank. Ah, unfortunately this one you can’t control… unless you move to a warmer climate.
The key to making all fleet fuel programs successful is making sure everyone with your company is on the same page. Layout the ground rules on every area that you want to see happen. Make sure everyone understands the rules and what the results will mean to your company. Include in their buying fleet fuel at the truck stops or locations that you have determined to be in your fuel network. As a company you will always be able to get a better deal if you buy more than one of something from any supplier. The same hold truck in fleet fuel, send your drivers to the same spot. Call a fuel consultant like Sokolis Group to help you negotiate the best deals for you and create win/win situation with the fuel vendors you are buying.
If you follow these keys your fuel management program will be successful and your company will be spending less money on fleet fuel. Good luck.
Sokolis Group is a fuel management company that helps companies reduce their fuel spend by reviewing, analyzing, auditing, negotiating and creating fleet fuel programs that create value and success from their clients. got fuel? We have fleet fueling solutions for you! www.sokolisgroup.com or 267-482-6155.
Tags: diesel fuel prices, fleet fuel, fleet fueling, free fuel audit, fuel analysis, fuel consulting, Fuel Management, fuel planning, fuel; fuel audit; goals; pricing errors; fuel pricing; save money, Sokoils Group
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By Joan Gottlieb - March 15th, 2010
The winter season is a difficult time in many ways, but spring is near.
Spring, a time of rebirth and new beginnings. Take time to recap, plan ahead, put improvement plans in place.
As a fleet owner, improvement may include a long list of various tasks; fuel costs probably at the top of the list.
The professionals at Sokolis Group can provide your company with specific fuel programs tailored to help you achieve fleet fuel savings.
All clients begin with a free fuel analysis of their current purchases and method of fueling. After which our professional fuel managers may offer suggestions to achieve fuel savings such as participating in the Sokolis Group network of discount fuel merchants, a possible change to the method of fueling your fleet, or providing your drivers with a universal fleet fuel card with membership benefits and set security controls.
Spring into action; call Sokolis Group today for your free fuel audit.
Tags: fuel analysis, fuel audit
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