Gas Prices Expect to Top $4 By Summer, How Companies Can Reduce Fuel Costs

The cost of diesel fuel in the U.S. is currently up over 75 cents per gallon compared to the same period in 2010 and could go even higher as chaos in the Middle East is only expected to get worse. Many experts are predicting that the price per gallon of diesel and regular gasoline could approach the $4 per gallon level. 2011 has been the perfect storm for rising oil and gas prices.

Global demand for oil is rapidly increasing due to economic expansion in China and India. Many parts of the US and Europe have been hit by severe winter weather, increasing the demand for heating oil, which causes higher demand for oil. Now the turmoil in Egypt and Libya is contributing to the high prices. OPEC is continuing to restrict supply. Plus the BP oil spill in the Gulf of Mexico only made matters worse, as there is less offshore drilling this year.

Fuel typically makes up about one-third to one-fourth of trucking companies' budgets, however when diesel prices get this high, the cost of fuel is the number one expense for trucking companies. Due to the economic recession, most trucking companies are already facing very thin margins.  Because most trucks average only 7 MPG, fuel expenses can really add up fast.

With gas prices this high, it makes sense for trucking companies to invest in a <a title="GPS fleet tracking" rel="nofollow" onclick="javascript:ga('send', 'pageview', '/outgoing/article_exit_link/4286630');" href="">GPS fleet tracking</a> system. Tracking and managing fleet vehicles can significantly reduce fuel expenses. The Aberdeen Group, an independent research firm, concluded that a GPS<a title="fleet tracking" rel="nofollow" onclick="javascript:ga('send', 'pageview', '/outgoing/article_exit_link/4286630');" href="">fleet tracking</a> system can reduce fuel costs by 13.2% on average.

A GPS fleet <a title="tracking system" rel="nofollow" onclick="javascript:ga('send', 'pageview', '/outgoing/article_exit_link/4286630');" href="">tracking system</a> has proven time and time again to reduce fuel costs. Reducing fleet fuel bills means higher net profits.  For example, if a truck fleet of 25 vehicles reduced idling time by only 15 minutes per day, it could easily result in fuel savings of 562.5 gallons  - reducing costs by roughly $1,986 per year at current diesel gas prices. If you reduce idling time by 60 minutes, it would result in a fuel savings of 2,250 gallons at a cost of almost $8,000 per year!

FieldLogix Green <a title="fleet management" rel="nofollow" onclick="javascript:ga('send', 'pageview', '/outgoing/article_exit_link/4286630');" href="">Fleet Management</a> System can reduce vehicle fuel costs low by:

•           Reducing excessive vehicle idling

•           Reducing excessive vehicle speeding

•           Improving the routing of vehicles

•           Eliminating excessive personal use of fleet vehicles

•           Improving vehicle maintenance

•           Ensuring that vehicles do not leave designated areas

•           Eliminating side jobs

Source by Codi David


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