Reducing Fuel Cost: Four Things You Need to Know & Can Act on Today
“Waiting it Out” is Not an Option
Companies are continually battling to control costs and improve customer service. The pressure increaes as the price of fuel rises – and it is not going to subside any time soon.
We all know that crude oil is a finite natural resource, and as with any commodity, fuel prices increase and decrease according to demand. According to the U.S. Energy Information Administration (www.eia.gov), both the gradual improvement in the U.S. and world economies in 2010 and ongoing political unrest in the Middle East and North Africa, since early 2011 (the source of about one third of the world’s oil production), are contributing to the ongoing increases in crude oil and gasoline prices. Additionally, the latest findings from the International Energy Association (www.iea.org) show conventional oil supplies will plateau by 2020, resulting in a sharp and steady rise in prices as demand from both developed and developing countries grows.
No one expects fuel costs to come down in the near term, so “waiting it out” is not an option.
What You Can Do Today
Fuel costs alone can reach 10 to 15% of total operating costs, and this percentage is growing. So what can fleet operations do today to reduce their total operating costs?