TORRANCE, Calif. — Fuel is one of the largest expenses associated with owning and operating a fleet, typically, second only to asset acquisition and depreciation. In the last decade, the average retail price of a gallon of unleaded gasoline has increased more than 126 percent, with average prices fluctuating as much as 39 percent from one year to the next. During this same period of time, the average retail price of a gallon of diesel fuel increased more than 160 percent, with the average price annually fluctuating as much as 33 percent.
Why the price increase and variability? Global energy demand, instability and war in petroleum-producing countries, international sanctions, changes in domestic energy policies and regulations, a global economic recession, and natural and man-made disasters have all contributed to the increased, unpredictable cost of fueling a fleet.
Here are some strategies to mitigate the effects of fuel price fluctuations and increases without impacting service levels.
For the full story, go to www.automotive-fleet.com.