Posts Tagged ‘Fuel Management’
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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By Sokolis Group - December 11th, 2010
As diesel fuel prices keep going higher all fleet companies need to take paths to achieve fuel savings. It seems every year the transportation industry faces new perils during the winter months and this year is no different. Currently the weather forecasters are predicting not only one of the coldest, but the snowiest in the last five (5) years. Among the challenges above and beyond the weather, diesel fuel prices are on the rise again and most states and many municipalities have mandated idling restrictions.
Here are a few simple tips to help maintain your fleet companies equipment, mobile fueling, lower diesel fuel prices, fuel cards and bring more fuel savings.
1. Please be sure you have adequately treated with diesel fuel additives the bulk fleet fueling tanks for the temperatures you will be dealing with. Think in terms of where the coldest point your fleet companies trucks will run to and treat accordingly with a quality diesel fuel additives program.
2. Block heaters are not designed to warm an engine. They are designed to maintain the heat already generated in the engine. Thus it is crucial that the truck be plugged in while the engine is still warm. If your fleet companies truck have them, use them. This will make starting fuel saving by being able to start the truck easier.
3. Remind the drivers to UNPLUG the truck before starting it. 2 – 3 seconds of the engine running while the block heaters are plugged in is enough to burn out the block heaters. This would add to your fleet management cost if they do this and reduce your fuel savings, communicate it clearly.
4. Do not idle the trucks. You will do more to COOL the engine by idling a truck coming off the road vs. shutting it off. (Engine temperature rises approx. 18 degrees when it is shut-off.) Conversely, good fleet management is starting a cold truck and letting it idle is futile. If you need to ‘warm’ a truck that’s been sitting – get in it and drive it around the yard and ‘exercise’ the truck once it has reached maximum oil-pressure. This will warm the engine, transmission, differential and suspension. Not to mention prevent running the risk of potential fines for idling for both the driver and the organization. Your diesel fuel prices will be lower by running your fleet companies trucks at maximum effeciency also increasing fuel savings. Fleet managers need to talk to drivers about these types of fleet management operations.
5. Remember to drain air-tanks and fuel water separators. As the ambient air temperatures fall, the ability for water to condense in fleet fueling tanks increases and can be carried into the filter/heater unit. During periods of extreme cold this should be done on a daily basis. The fleet fueling filters are the only protection the engine has against possible contaminants from your fuel companies fuel. A larger micron fleet fueling filter should never be used to extend filter life or increase flow. It may void the warranty and can be damaging to the pump and/or the injectors. What might seem like a fleet management solution today can cause your fleet companies operation a lot more later. Use properly treated diesel fuel additives and your fuel savings and fleet fueling filters will be fine.
6. Be sure air hoses are ‘hooked up’ to each other or if equipped to the dummy glad-hands when the equipment is not in use. This is one of the leading causes of brakes freezing up. As fleet managers, as part of your fleet management directives this should be in as part of your plan.
7. If moisture is present in an air-line, use one cap full of brake line anti-freeze in the EMERGENCY (red) side ONLY. Never put it in the blue side or you may cause the brakes to lock up. Use only company supplied brake line anti-freeze as there are many products out there that will cause damage to the internal brake system.
8. Be sure glad-hands hook up ‘tight’. If they go on ‘loose’ they will come off in a tight turn and will cause unnecessary cycling of the air compressor. Make sure you have a nice and snug fit.
These few tips can make the difference between go or no go situation, making that delivery commitment, or completing a run vs. a breakdown. Breakdowns during inclement weather are extremely dangerous. There are many great tips for proper fuel management in cold weather but best tip is to increase driver awareness and subsequently hold them accountable for action or inaction and hopefully fuel savings or at least not increased costs on your diesel fuel prices.
As we all soon get ready for a new year, it is time to review our fuel management, fleet managment, fuel companies and fuel cards. We like to say take stock in all of your program by reviewing your fleet management programs, fleet cards, diesel fuel additives, fuel management systems to make sure these fueling projects are still providing you fuel savings. Each fleet companies operation should take a look at it’s projections on diesel fuel prices now for next years fleet fueling budget and take additional actions on it’s mobile fueling, fuel card, fleet management services to increase fuel savings. It looks like 2011, diesel fuel prices will be going higher so fuel management more than ever will be important. Sokolis Group is here for you to help decide on your fuel card, mobile fueling, fleet card and lower your diesel fuel prices and increase fuel savings in 2011.
Tags: diesel fuel additives, diesel fuel prices, fleet managers, fuel card, Fuel Management, mobile fueling
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By Sokolis Group - December 10th, 2010
Oil traded above $88 a barrel in New York after a decline in U.S. jobless claims bolstered speculation the economic recovery may boost fuel demand in the world’s biggest crude-consuming nation. Time to put your fuel management pants on and make sure you have a good fuel card.
Futures rose as much as 1.1 percent yesterday after the Labor Department said applications for unemployment benefits dropped 17,000 to 421,000. Economists forecast claims would fall to 425,000, according to a Bloomberg News survey. Prices climbing to $100 may indicate “something wrong with fundamentals” in the market and lead OPEC to act, said Abdalla El-Badri, the organization’s secretary-general.
“The market is reading the jobless claims as a barometer to where we see demand for commodities, in particular oil,” said Jonathan Barratt, managing director of Commodity Broking Services Pty in Sydney. “OPEC is meeting this weekend and they won’t do anything until it reaches $100 a barrel.” With $100 a barrel, diesel fuel prices will top $3.50. This will raise fleet companies, fueling prices.
The January contract was at $88.57 a barrel, up 20 cents, in electronic trading on the New York Mercantile Exchange at 10:36 a.m. Singapore time. Yesterday, it added 9 cents to settle at $88.37. Prices are down 0.7 percent this week and 12 percent higher this year.
China’s November oil imports rebounded to 20.91 million metric tons, or about 5.1 million barrels a day, from October’s 16.4 million, according to preliminary data today from the General Administration of Customs in Beijing. Refiners in the world’s second-largest oil consuming nation have been ramping up fuel production to meet a shortfall in diesel fuel prices and supplies.
‘Suitable Levels’
The U.S. Labor Department said the number of people continuing to collect jobless benefits slipped by 191,000 to 4.09 million. Economists forecast a drop to 4.24 million.
“Oil prices firmed after U.S. jobless claims fell more than expected and revived hopes that a labor market recovery is under way,” Mark Pervan, head of commodity research at Australia & New Zealand Banking Group Ltd., said in a note.
Crude prices are at “suitable levels,” OPEC’s El-Badri said yesterday in Quito, Ecuador, where the organization will meet Dec. 11 to review its output. Demand is growing fast in China and India and moderately in members of the Organization for Economic Cooperation and Development, he said. Oil climbed to $90.76 a barrel on Dec. 7, the highest intraday price since October 2008. Most fleet companies will need to increase their fleet management.
Tags: diesel fuel prices, Fleet Management, Fuel Management
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By Sokolis Group - December 10th, 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 margin that your fuel supplier 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?
Visit us on the web at www.SokolisGroup.com or call (267) 482-6160
Tags: fleet fueling, fuel audit, Fuel Management, fuel planning, mobile fueling
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By Sokolis Group - December 1st, 2010
The expression it’s too good to be true it probably is. How about diesel fuel prices or gas prices? As reported in Oil Express fleet fueling industry newsletter by Oil Price Information Service ( OPIS , a Houston fuel companies operator has been charged with $30 million dollars for deliberately miscalibrating fueling pumps. According to Oil Price Information Service ( OPIS ), the fleet fueling operator did not calibrate the fueling pumps according to Texas regulations.
When the fuel companies operator found out that the state officials were on to the companies long going scam they tried to recalibrate fueling pumps or put fueling pumps out of service. It’s not totally clear how much fuel was stolen from fleet companies and consumers or if the fleet fueling marketer was trying to post lower diesel fuel prices ad gas prices to control the market. Through fleet cards, fuel cards and fleet fueling receipts in an 8 week period of time over 727,000 fraudulent fueling sales were made.
We have told clients for years not to buy fleet fueling at retail locations it certain parts of the country, no matter what the diesel fuel prices are. See if every other fleet fueling or even mobile fueling provider is charging X and there are other fleet fueling or mobile fueling companies charging Y but your only getting 8/10th or 9/10th of a gallon, are these diesel fuel prices really cheaper? There are a lot of place to purchase your fleet fueling or get your fleet companies trucks mobile fueling most are very good quality suppliers. The state’s control weighs & measure that handle fueling pumps calibration. Most locations are checked for proper fueling calibration by the state one time per year.
You can see how fuel companies can mess with fleet companies, miles per gallon and potential fuel savings. If you are suspicions call your local state agency.
Let’s make sure for your diesel fuel prices you’re not buying fuel today and getting fueled (fooled) tomorrow. Let our fuel management system and fleet fueling consulting staff helps you.
Tags: diesel fuel prices, fuel audit, fuel card, Fuel Management, mobile fueling
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By Sokolis Group - November 29th, 2010
Keep Tires Properly Inflated
Keep tire air pressure at the level recommended by your vehicle manufacturer. A single tire under inflated by 2 PSI, increases fuel consumption by 1%.
Avoid High Speeds
As your speed increases, your aerodynamic drag increases in an exponential fashion. Driving 62 mph (100 km/h) vs 75 mph (120 km/h) will reduce fuel consumption by about 15%.
Keep Windows Closed
Windows open, especially at highway speeds, increase drag and result in decreased fleet fueling economy of up to 10%.
Do Not Accelerate or Brake Hard
By anticipating the traffic and applying slow steady acceleration and braking, fueling economy may increase by as much as 20%.
Purchase a Fuel Efficient Vehicle
When buying a new vehicle examine the vehicle’s rated fuel efficiency. Usually choosing a small vehicle with a manual transmission will provide you with great fueling economy. Trucks with automatic transmissions will provide a more efficient truck and lower diesel fuel prices or at least stopping for diesel fuel.
Avoid Heavy Loads
Remove the sand bags from your trunk in the spring and pack lightly for long trips.
Use A/C Sparingly
When the air conditioner is on it puts extra load on the engine forcing more fuel to be used (by about 20%). The defrost position on most vehicles also uses the air conditioner.
Service Vehicle Regularly
Proper maintenance avoids poor fleet fueling economy related to dirty air filters, old spark plugs or low fluid levels.
Use Cruise Control
Maintaining a constant speed over long distances often saves gas and diesel fuel prices
Avoid Long Idles
If you anticipate being stopped for more than 1 minute, shut off the car or fleet companies trucks. Restarting the car uses less fleet fuel than letting it idle for this time.
This steps above along with a fuel management program that gives your company a good fleet card –fuel card, mobile fueling program, fleet credit card, lower diesel fuel prices will all help your company with its fuel savings.
Tags: diesel fuel prices, Fleet Management, fuel card, Fuel Management, mobile fueling
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By Sokolis Group - November 27th, 2010
Ok, everyone who worries about diesel fuel prices and gas pricing increases in taxes coming from a person in fuel management, please wait a second before being upset. Before this article goes any further, politics don’t sway my view on higher taxes, which will increase diesel fuel prices and gas prices but common sense might.
What can you buy today for the same price as you did in 1993? If you answered Federal tax on diesel fuel prices and gas prices you are 100% correct. Since the tax on diesel fuel prices was 24.4 cents in 1993 and gas tax was18.4 cents if they were adjusted for inflation they should be 43 cents on diesel fuel prices and 36 on gas prices. If those taxes had been collecting over the last 17 years, would are highway system be better. It didn’t happen so let’s look ahead.
For a fuel management company that works hard to save fleet companies 5- 25 cents on diesel fuel prices, how could we even think of wanting fueling cost to go higher? As our clients are fleet companies are the roads, highways and bridge infrastructure system better today than in 1993? Were they good in 1993?
The thought is everyone can talked about better fleet management for their fuel management system and saving money on fuel cards, diesel fuel prices, mobile fueling and diesel fuel additives. If there was a no porked up tax on diesel fuel prices or gas taxes, what would things look like? Raise the federal fuel tax rates for diesel fuel and gas to the save level. Let’s say to 50 cents a gallon on both gas prices and diesel fuel prices. Yes, that means gas prices are going to go up more than diesel fuel prices. Let’s do a nickel increase now on fueling. Let’s raise it another 10 cents in six months. And within the next 24 months we get to the 50 cent federal tax per gallon for both gas and diesel fuel prices per gallon. Then every year on January 1st we raise the tax by the rate of inflation rounded to the nearest cent. This would help simply our fuel tax system on diesel fuel prices and gas prices.
On the surface this might not help fleet fueling for fleet companies or the general public but let’s look at the positives:
- Better infrastructure means less traffic congestion, less fleet companies driver delays, improved production
- Improved roads mean less damage to vehicles, tires, suspension and damage to goods being shipped
- Safer better roads and bridges are difficult to put a price tag on that
- More jobs. It doesn’t take an economic genius to realize more construction means more construction jobs, driver jobs, electrician, steelworkers, uniform companies, technology jobs, etc.
What does this stuff mean to the United States? It is a tax that effects everyone who drives or has fuel management, fleet companies and fuel companies.
- More people working, means more people spending money on everything!
- People, who have been unemployed because they can’t find work and therefore needed unemployment money to survive, come off unemployment and start paying taxes. They need to use their fuel cards and buy fleet fueling.
Yes, gas prices are higher, diesel fuel prices are higher but they should have been. We have all not really been paying our fair share on these fueling taxes. As hybrid & electric vehicles become more popular some creative way is going to need to be developed to tax those vehicles. Yes, those vehicles use less or no fuel but they still put wear and tear on the infrastructure, right? The old expression, no free lunch, you use the road, you need to pay something, even if it’s a reduced fee from diesel fuel prices or I should save fleet fueling tax.
Again, let’s be clear, this fuel management, fuel consulting person is just stating a view. No politics, no left or right nor do we want our clients to pay higher diesel fuel prices on their fuel cards, mobile fueling or fleet cards. We want economic growth, good roads, bridges and infrastructure we can build off of for the future. Just an open view that you can’t expect what you received almost 20 years ago for the same cost today.
Tags: diesel fuel prices, fuel card, Fuel Management, mobile fueling
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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 Lisa Hermann - May 17th, 2010
Many of us spend long hours at our desks, so to help make the workday comfortable and productive it helps to create an environment conducive to clear thinking. By establishing a good desk environment you are guaranteed to improve your efficiency and achieve more in your day.
The paperless desk:
Remove all paperwork from your desk – create files for your projects, reference folders for information you need to access regularly, a reading file for articles, reports, journals and FYI documents and a daily files for administrative, miscellaneous and day specific tasks. Keep your files on shelves or in drawers. The only thing on your desk at any point in time should be information relating to the task or project you are currently working on.
Stationery drawer:
Keep stationery in desk drawers rather than on your desk. Get rid of all clutter and keep your desk clear for essential items relating to the current piece of work you are doing.
Inspire yourself:
Surround yourself with positive images. Keep a photo or phrase that motivates you in view to remind you of and motivate you toward continually striving for your goals.
What are some of the things that work for you? Share with us…
Tags: diesel fuel prices, fleet fuel, fleet fueling, Fuel Management, Sokoils Group
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