Posts Tagged ‘Fuel Management’

Diesel Fuel Prices End Year at $3.791

By Sokolis Group - January 2nd, 2012

Diesel fuel prices tumbled more than 10 cents during the final two weeks of 2011, the Department of Energy reported, as refineries continued ramping up production.

The national diesel fuel price average dipped 3.7 cents a gallon to $3.791 on Dec. 26, which followed a drop of 6.6 cents the prior week. All good for your fuel card so you don’t run up too big of numbers.

Diesel fuel prices since moving back above $4 a gallon during November, truckers fleet fueling has fallen a total of 21.9 cents over the past five weeks. However, the diesel fuel price average is still closed 2011 49.7 cents higher than it was at the end of 2010, according to DOE data. I guess know since we are in 2012 we will have to drop that 2010 comparison so each fleet manager doesn’t get stomach pains when they see the difference between the years.

Crude oil on the New York Mercantile Exchange also remained near the $100 a barrel mark as 2011 closed because of European financial uncertainty and political concerns in the Middle East, Bloomberg News reported.

Despite rising oil prices, Phil Flynn, a senior market analyst for Chicago futures brokerage PFGBest, told Transport Topics that diesel fuel prices were falling because unseasonably high temperatures have been allowing refineries to produce more diesel, rather than heating oil, from distillate stocks.  Now there is good news for each fleet manager and their fuel management.  It’s fuel savings on fleet fueling without having to work at it.  Count that as an earlier present because 2012 will be a rocky each for fleet management.

DOE’s Energy Information Administration also reported that total domestic distillate output was 4.4 million barrels a day for the week of Dec. 16, up from 3.24 million barrels a day the week of Nov. 25.

Despite the positive trend, trucking executives said they were remaining cautious on diesel fuel prices as 2012 began.  As well everyone should because fuel savings will be difficult to come by during the year unless you have a proper fuel management approach.

Look what happened in late December, oil rose for seven straight days — and briefly topped $101 a barrel — before declining on Dec. 28 after Europe’s Central Bank loaned cash to several financial institutions to keep credit flowing.

Besides concerns about Europe, Iran’s threats to close the Straits of Hormuz and political upheaval in Russia also were blamed for the fleet fuel price increases.

PFGBest’s Flynn noted that crude supplies at a three-year low in the United States, which also was keeping prices elevated.

See unlike most things crude oil and its little brothers gas prices and diesel fuel prices react to EVERYTHING that goes on in the world.  Now is the time to call Sokolis Group at 267-482-6159.  Don’t wait until $4.25 diesel fuel card costs.  Let us help you get your program running smooth now.

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Could Diesel Fuel Prices Hit $5 in 2012

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.

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Diesel Fuel Prices Go Up More Than 10 cents. $100 Barrel Crude Near

By Sokolis Group - November 17th, 2011

Diesel fuel prices are starting to make a run again this week up a dime to its highest level in almost six months —  a national average price of $3.987 a gallon, the Department of Energy said Monday.

Gas prices, meanwhile, rose for the first time in four weeks, gaining 1.2 cents to $3.436 a gallon, DOE said.

The diesel fuel prices jump — its biggest since a 10.2-cent leap on April 11 — left fleet fueling at its highest level since May 23.  Turning companies fleet managers to look for other fuel savings.

Diesel fuel, which took its first dip in a month last week with a half-cent decline, we are almost paying a dollar more for fleet fuel now than we did a year ago.

The diesel fuel prices average now tops $4 a gallon in two of five DOE regions, the West Coast and Rocky Mountains, while it also tops that level in the East Coast’s New England and Mid-Atlantic sub-regions. This trend will continue to hit your fuel cards and fuel savings.  The next several months look to be rocky when it comes to diesel fuel prices, the best way to ensure fuel savings as a fleet manager is taking a look at your fuel management.

California, which DOE breaks out separately but is included in the West Coast figures, posted the highest price, at $4.27 per gallon.

Oil prices, the main driver of end fuel prices, have jumped in the past three weeks, from the mid-$80s per barrel in mid-October to the high-$90s this month.

Crude futures finished the trading week Friday at $98.99 a barrel on the New York Mercantile Exchange, the highest closing price since July, Bloomberg reported.

Oil fell 85 cents Monday to finish at $98.14 per-barrel on the Nymex, Bloomberg said

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Is Fleet Fueling Free Falling?

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.

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Diesel Fuel Prices Go Down, But Don’t Get Hopes Up

By Glen Sokolis - March 22nd, 2011

Yes, the DOE national weekly average for diesel fuel prices went down for the first time since November 2011. But don’t get too excited about your fuel management budget because they only went down $.001. That combined with a continued increase in gas prices does not look good for your tanks. Certainly your fleet fueling program will continue to feel pressure.

Where is the fueling market going to go from here? Higher! Yes, I said higher. This week when your drivers swipe their fuel cards at the truck stop, diesel fuel prices will be up, although not by much. Long term, I think we are close to the peak on the diesel side, but don’t let out a big sigh of relief just yet.

As for your fleet cards, they will still be hurting with high gas prices due to increased demand and the upcoming almighty summer driving season. Even that won’t crush your fuel card purchases too badly. Americans tend to stop buying gas at $4.00 per gallon, so I don’t expect it to get to that point everywhere, only in those states with high fuel taxes. I speculate a peak at $3.85 a gallon in most places.

What is your fleet fueling strategy now? If you’ve planned ahead and have a fuel management program in place, then good for you. However, if you’re feeling the pain of high fuel prices and still uncertain what your next steps are, now is the time to revamp. Let our fleet fuel experts provide a comprehensive analysis and set you up with solutions for success. Don’t settle for reaction — take action. Make the call 267-482-6155.

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Perseverance in Fleet Fuel Management

By Glen Sokolis - March 7th, 2011

Headlines everywhere screaming gloom and doom; uncertainty in the Middle East, shaky stock market, oil prices up again week after week after week. And to pour salt on our wounds, the EIA (U.S. Energy Information Administration) reported the second largest one-week increase in gasoline prices in past 20 years!  This hurts the general public, but is especially painful to those of us in the fleet fuel management industry. People feel stuck, helpless. In the midst of all the bad news wouldn’t you like a glimpse good ol’ perseverance?

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.

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Expect the Unexpected For Diesel Fuel Prices and Gas Prices

By Glen Sokolis - February 21st, 2011

I was going to write an article on Friday about what happened to all of those people, who way back when, predicted $100 a barrel for crude oil and increased diesel fuel prices and gas prices right along with it. In fact, I admit, I was one of those people. Wasn’t almost everyone? Well, many things have happened since then.

  • Crude oil prices did make it to $93 a barrel, then retreated back to the mid-to-upper $80’s
  • Gas prices continued to go up
  • Diesel fuel prices went higher too
  • Revolution erupted in Egypt, a key supplier of crude oil
  • Worries heightened for everyone as domino effect of civil unrest spreads in the Middle East
  • Fuel supply remained strong in the U.S.

If not for the big turn of events in Egypt, the Middle East probably would have remained calm (or at least as calm as the Middle East can be). Other countries such as Libya, Bahrain and Tunisia have jumped on the revolution bandwagon. The uprisings have lead to a trickle down effect that could turn out to be a real horror all the way across the ocean to gas pumps here in America. Pun intended. Although it’s not an oil producer, even Bahrain has international traders closely monitoring its country’s political tensions. The U.S. has important strategic interests there, including the positioning of our U.S. Navy’s Fifth Fleet tasked with patrolling oil shipping lanes and monitoring Iran. You can feel your fleet fueling budget increase with almost every paragraph. And, there’s more unsettling news. Iran is attempting to send its war ships through the Suez Cannel in order to provoke a response from Israel. Why?  To take the focus off of its own internal unrest, and put the spotlight on Israel. It’s one of those situations where the people of Iran might say, “I hate my government but I think I hate Israel more.” 

Feeling helpless? Wondering what you are going to do? You certainly can’t control global happenings, but you do have the power to get a grip on your company’s fuel management. Now is the time to figure out what’s best for your fleet fueling. Here are more reasons not to delay:

  • Libya threatened on Sunday to cut oil exports to western countries within 24 hours unless authorities stop what they called the “oppression of protesters”
  • Major oil companies did one better and pulled workers from Libya because of the hostile threats
  • Oil reserves from OPEC are at their lowest level in 2 years reports the EIA

Saudi Arabia supplies about 12% of global oil production and sits on at least a fifth of the world’s oil reserves. Saudi Arabia faces the same problem that was a major driver of the protests in Tunisia and Egypt to begin with: youth unemployment. Data by the Central Department of Statistics & Information (CDSI) estimates that 39% of Saudis between the age of 20 and 24 were unemployed in 2009. The world’s oil supply does not have enough room for margin when it comes to fuel management supply. Therefore, if these interruptions happen and go on for any length of period we could easily see crude oil prices of $125 – $150 per barrel.

To think just a couple of weeks ago, it looked like all of the fears of $100 crude were just that. I had called it a special energy that people wanted to see $100 crude. The fact is now, most people are really nervous. This is not a supply and demand issue that people thought would push diesel fuel prices higher. This is civil unrest. If fueling prices push that high, the only thing fleet companies can do is to control the controllable. What I mean by this is simple:

 You can’t control fleet fueling prices going up to $4.00 or $4.50 a gallon. Not unless you have some kind of fueling hedge in place. What you can do though is control your gas and diesel fuel prices in other ways. I’ll share some of my expert advice with you here:

  • Buy diesel fuel better through your fueling vendors.
  • Reduce idling on your trucks.
  • Increase your fleet management by making sure, trucks are running at optimal performance.
  • Fleet managers should provide additional driver training on shifting, braking and speed management.
  • Consider mobile fueling vs. fueling at a retail station. It’s not always about what diesel fuel costs but what does it cost you to fuel your trucks. For most fleet companies there is an out-of-route mileage component and a labor cost. If mobile fueling can cut those costs down or eliminate them, how much additional overall fuel savings do you have?
  • Evaluate back office and frontline controls. Ask yourself: What controls do you have on your fuel card program? Is the fueling information coming from your fleet card easily integrated to your accounting system? Can you take the fuel cards information and put it into your fleet management system or your fuel management system?  If these things are easy for your staff then you have waste time that relates to your overall diesel fuel price, right?

If you’re not sure of the answers, or even what questions to ask, it may feel like it’s time to run to the closest bridge and jump. But don’t. Be assured, there is help available. Let’s face it, cooler heads will prevail.  If you’re ready for some expert advice or direction, Sokolis Group will help you manage the unexpected. 267-482-6160, gsokolis@sokolisgroup.com

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You Don’t Need a Cape to Be A Superhero in Fleet Management

By Glen Sokolis - February 17th, 2011

Are you a fleet manager or fuel manager? Are you the president or CFO of a fleet company concerned about your company’s bottom line, again? Are you tired of sitting on the edge of your seat, sweating, worrying and waiting for the Department of Energy to report that diesel fuel prices are up per gallon for the nth week in a row? Accept the inevitable; diesel’s national average price will be what it will be. You can’t control it. It’s out of your hands. However, do not throw in the towel just yet. Take a deep breath, sit back in your chair, roll up your sleeves and empower yourself. Now is the time to gain control over those things that you CAN control. Be your own superhero. Help save your fleet management company. Save time. Save money.

No more feeling helpless, buried under tasks and maxed out on time. No more wondering IF your company’s current fleet fuel management programs are working, or WHY they aren’t. Yes, you are considered the fuel expert for your company, so make an executive decision and steer your company down the road to increased profits and decreased expenses. Reach out to industry fleet fueling experts that have the insight you need to optimize your programs. No more same old, same old. Fleet fuel experts have access to essential industry data and proven performance records that can put you back on track so you don’t have to hold your breath each week. Let the fuel prices do what they will do knowing that you have the power to put your company on solid ground.

A fleet fueling expert can perform a comprehensive analysis of your current fleet management programs and determine what fleet management approach is best for your fleet company’s vehicles. Detailed analysis can determine the best use of your fleet cards or fuel cards, whether truck stops, mobile fueling or onsite refueling is best for your fleet mobile fueling, and if your company would benefit from a fuel saving plan. They can even establish fuel auditing for all your fueling transactions that will raise red flags and stop losses due to theft or simply incorrect fuel charges.

You’re thinking, why would I consider the added expense of hiring a fuel expert when I’m looking to save money? Shouldn’t I, or one of my employees be able to come up with the cost-saving and income-generating policies already? Well, the fact is, at the end of the day, fuel experts can save a company three times as much as the cost of hiring one. And, fleet fueling experts micro-manage the situation for you so that you can focus on the big picture.

Fuel experts are dedicated to monitoring multiple industry variables for you. They build fleet management programs that are specific to your company. Stop wondering how you can do things differently, more profitably. Consult with a fleet fueling expert and start implementing a fuel management program that you can count on. It’s a win-win situation. You save your time and your company’s money. You look like a hero.

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Diesel Fuel Prices Up for 10th Straight Increase — Ouch!

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.

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Diesel Fuel Prices Up Again, Diesel Fuel Prices Up Again

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.

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