What is up with Gas Prices?!?
In the article we take a deep dive into the current state of gas prices and why gas prices continue to rise. We explore ways to save money on your fuel expenses, including new Technologies and and resources you very well may not have heard about.
Why are they so high right now?
God, I remember growing up, Diesel Gas Prices were always lower the our regular gas. Then, somewhere in the early 2000’s it seems that trend stopped and reversed. Gas prices for diesel have and, from what it seems, will continue to be higher than regular automobile gas prices. One of the reasons diesel gas prices have been higher is simply because of demand. Many countries around the world have increased their demand for diesel and other distillate fuels. The biggest reason however is the US Government implementing strong anti pollution regulations and laws. Fuel refinement costs are ever increasing due to ever increasing regulations. Changing regulations reflect changing equipment and infrastructure, which is always very expensive. And, all of that to say, is that causes gas prices to rise. Oh, and don’t forget the federal excise tax for on-highway diesel fuel is 6 cents higher than regular gasoline.
In an attempt to help curtail the surge in gas prices since 2014, the Biden Administration recently directed the U.S. Department of Energy to release 13.4 million barrels of crude oil from the U.S. strategic reserve.
A gallon of diesel is now at its highest price since August 2014 at $3.85. A gallon of diesel costs $1.11 more than it did one year ago. According to some the future doesn’t look any better, for a while at least. With air travel expected to continue to rise, the impact on gas prices could be substantial.
The Crude oil futures are sky rocketing:
And all the analysis and charts out there all express pretty much the same thing:
Higher and higher prices. Everyone in the business knows it, and are making huge changes for the future of their companies. One example is Cummins is activally reinforcing their longevity in the logistics and shipping industry by investing in alternative energy solutions. Compressed Natural Gas.
Almost, if not all, of the main manufactures are researching new technologies to stay competitive in this rapidly changing world. All signs point to gasoline and diesel fuel will one day be almost eliminated, and the result will be continual forever rising gas prices.
So, what are some things we can do today, right now, about the current gas prices and how they are killing your bottom dollar.
Being aware of the latest performance fluids for your truck or fleet of trucks can be the most significant damage you can do to help combat the rasing gas prices. Back in 2016, the American Petroleum Institute released a new engine oil performance category called FA-4. Testing has shown up to a 2% increase in fuel economy!
It’s easy to believe thAt 24% of the cost per mile is fuel cost. So, in the fight against rising gas prices something as simple as switching oil could end up saving you a significant amount of money. Especially considering a lot of trucks see more than a million miles. The North American Council for Freigh Efficiency and Carbon War Room released a joint report in 2016. In this very lengthy report they find using new lubricant products, specifically low-viscosity oils can reduce fuel costs.
“Class 8 over-the-road fleets can realistically expect fuel savings in the range of 0.5% to 1.5% by switching from 15W-40 to 5W/10W-30 engine oil.”© 2016 North American Council for Freight Efficiency.
The second action item you can implement in the war against rising gas prices is using the latest technology available.
The MIT Freight Lab published a study that shows drivers lose upto 40% of their time in delays. There are a lot of mapping apps, route apps, freight logistic services available. However one of my favorite new technology company is Vector
Vector has been able to reduce wait times for a lot of companies with their yard management tools,virtual check ins, etc. This stuff is really exciting, and you should definitely check them out.
And finally, quite possibly the easiest way to win the war on gas prices are services available to you from US Compliance Services.
We offer Fuel Card Solutions.
A fuel card program can help your truckers save up to $0.18 for every gallon at 1,550 major truck stops and stations across the country. Given how much gas costs and how often freight fleets need to fuel up, the savings can be substantial. Our fuel cards offer up to $2500 a week for every truck. Also included is a mobile app that offers route planning and best fuel prices available.
Learn about our services on our services page.
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Still have questions? Give us a call at 1-877-405-5003.