Posts Tagged ‘gas prices’
Low Gas Prices Drive Consumers to Think Big…For Now
Thursday, September 24th, 2009
There has been a lot of talk lately about smaller, more efficient cars being the new face of America’s roads. Yet despite the discussion, lower gas prices are causing used car buyers to revert to bigger vehicles.
Small used cars are taking a hit on value in the market, according to Kelley Blue Book. Even the once hot-ticked Smart ForTwo is suffering, according to the auto pricing publication.
“Its part of a larger trend that’s been happening all year,” says Alec Gutierrez, a senior market analyst for KBB. “Some of the weakest segments are subcompact, compact and hybrids.”
This trend reflects a couple of important things to consider about the current market: first, it shows that gas prices have been remaining at what consumers view as a reasonable level for a prolonged period of time. But more importantly, it shows that consumers are not thinking long-term when it comes to their vehicle purchases. The federal government is mandating smaller, more efficient cars, but for now consumers are staying away from them due to higher costs.
Lower demand for SUVs during 2008’s price spike led to lower prices which are now very enticing to buyers. “We do see big stuff moving,” says Steve Bussjaeger, owner of the Star SuperCenter used car lot in Glendale, Calif. “They got cheap… People are more price conscious than gas (price) conscious.”
To those looking for a compact car, the near future will hold some deals, as demand for larger vehicles is having the inverse effect on small cars. Value is down 15% since 2008 on small autos.
“The entire industry has suffered this year. … The small-car segment has been affected by this as well,” says Smart USA spokesman Ken Kettenbeil. “However, we know that in time both situations will change. For this, and many other reasons, the trend will transition toward smaller vehicles.”
Photo courtesy of wili hybrid under the Creative Commons License.
Tags: compacts, efficient cars, gas prices, hybrids, KBB, Kelley Blue Book, Smart Fortwo, Smart USA, Star SuperCenter, subcompact
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Gas Prices Continue to Rise for Fleets
Tuesday, June 23rd, 2009
The Energy Department reported Monday that gasoline prices rose for the eighth straight week, with the national average for unleaded gas up 2 cents to $2.69 a gallon.The increase is the smallest since fuel costs started rising in April and analysts are saying that prices should top out not much higher than $2.70 a gallon.
While the price are still a little high for fleet managers trying to keep operating costs down, costs are much more manageable compared to last summer. At this time last year, the national average was $4.08 a gallon.
This summer prices are leveling out sooner because of cheaper crude oil and less demand due to the struggling economy.
Breaking down prices by regions, the West Coast had the most expensive prices, averaging $2.93 a gallon. Gulf Coast states had the cheapest gas at $2.56 a gallon.
What are prices like in your part of the world? Let us know.
Tags: Energy Department, fleet managers, fuel, gas, gas prices, operating costs, USA Today
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Obama and The Future of Fleet Vehicles
Thursday, May 21st, 2009
Earlier today, President Obama set in motion a nationwide program to cut vehicle carbon emissions and raise mileage by 30 percent by 2016.
The initiative, backed by auto executives, union leaders and environmental activists is aimed at both increasing gas mileage and decreasing greenhouse gas pollution for all new trucks and cars.
According to an article on MSNBC, the president estimates that the program will save 1.8 billion barrels of oil over the lifetime of the vehicles sold in the next five years.
Doing so will also allow car companies to readjust their way of doing business and their product line, providing some optimism throughout the industry that a plan is in place to help them survive the recent economic downturn.
The new program will cost consumers an estimated $1,300 per vehicle starting in 2016, but Obama claimed that drivers could save nearly $2,800 over the lifetime of a car.
Ultimately, the goal is to cut greenhouse gas emissions by more than 900 million tons.
For fleet owners and managers, Obama’s figures are based on a 35.5 mpg average, however cars and light trucks would be required to rise from 27.5 mpg standard to 39 mpg and larger trucks would rise from 24 mpg to 30 mpg.
With dealer lots closing and new standards being set by the President, a lot of news could be effecting how you are managing your fleet.
Let us know how this is impacting your business and for more information, read the full article about Obama’s new emissions program here:
Photo copyright of Gustty under the Creative Commons License
Tags: carbon emissions, fleet, fleet owners, gas prices, greenhouse gas, MSNBC, president obama
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Average Gallon of Gas $2.12, Diesel $2.26 in 2009
Thursday, May 21st, 2009
If you don’t have a fleet card to lock in a rate or prevent unauthorized purchases, it can be difficult to manage, let alone predict, your fuel expenses. But having a good idea of what you’ll spend on gas this year helps.
The Department of Energy said the national average price for regular gasoline at the end of 2009 will be $2.12 per gallon, according to a story from businessfleet.com.
Diesel fuel will average $2.26 a gallon this year and rise to an average $2.48 in 2010. Gas prices will rise to $2.30 avg. per gallon in 2010, 12 cents under the previous forecast, while diesel fuel will rise to an average $2.48 per gallon next year.
For today’s average gas price in your city, click here.
As we mentioned above, a fleet card can better control your fuel costs while saving you cash along the way. If you don’t have one and would like to know more, visit fleetcardsusa.com.
To read the entire article click here
Photo copyright of Alberto.. under the Creative Commons License
Tags: avergae gas price, businessfleet.com, department of energy, Diesel fuel, fleet card, fleetcardsusa, gas, gas prices
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Oil Companies and Auto Makers Top Forbes Fortune 500 List
Tuesday, April 28th, 2009
One would think that with the fall in oil prices, an economy that has decreased the amount of travel on the road and in the air by record numbers and a real global push toward hybrid vehicles that this wouldn’t be the year that an oil company would find itself number 1 on Forbe’s list of Fortune 500 companies.
One would think…
However, the list, released in mid-April, has Exxon Mobil knocking Wal-Mart out of the top spot by posting a revenue of $442.85 billion dollars, with profits of $11.4 billion. Yes, billion.
Two other oil companies, Chevron Corp. and Conoco Philips, were listed in the top ten as were automakers General Motor and Ford Motor.
Forbes did say that 2008 marked the worst economic performance for America’s biggest companies in the magazine’s 55-years history, with earning dropping nearly 85% from the previous year.
The oil companies all proved they were able to generate revenue despite the downturn, but that may be in jeopardy if congress passes a cap-and-trade law that would smash their profits.
For you and your fleet, that could mean that oil companies try and find their money in other places sooner than later…like the pump.
Gas prices have been pretty stable the past few weeks, but with summer months on the way, that could change before you know it.
We’ll keep you posted.
For Forbes complete list of Fortune 500 companies, check out CNN’s Money page.
Tags: Chevron, Conoco Phillips, Exxon Mobil, Forbes, Ford Moto, Fortune 500, gas prices, General Motors, Wal-Mart
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Diesel Prices Continue Their Roller Coaster Ride
Monday, March 30th, 2009
Diesel prices continue to move at a roller coaster pace, up one moment and down the next. At this moment, they are unfortunately on the up.
Diesel prices reached their frenzied peak at July and have steadily fallen since until this week, where the national average shot up by seven cents. A gallon of fuel will now cost you $2.09.
Prices rose in every region except for New England, which was already at a higher then average price and remained unchanged. Those in the Gulf Coast saw the biggest leap when diesel jumped from $1.973 to $2.06, an 8.7 cent increase.
The reason for the increase? The price of crude oil rose due to better economic news that has experts hoping will increase demand.
While it’s good to finally hear positive news about the economy, let’s hope that we never return to the days of over $4 a gallon.
Photo copyright
Tags: economy, gas prices
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Wal-Mart Goes Green for Fleet Efficiency
Tuesday, March 24th, 2009
The store made famous for its everyday low priced goods may soon also gain notoriety for the way it delivers those goods to the store— with an everyday low impact fleet.
According to Fleet Owner, Wal-Mart Stores will test four different types of environmentally friendly heavy-duty vehicles, including two hybrids and two alternatively-fueled trucks, throughout 2009.
“In order to meet our goal of doubling our fleet efficiency, we are taking an active role in the development of these technologies,” said Chris Sultemeier, Senior VP of transportation for Wal-Mart Stores, Inc.
With unpredictable gas prices coupled with an economy where fleet businesses may find themselves driving further to turn a profit, is this type of efficiency the road to the profitability?
What about businesses who cannot afford the costs of alternative fuel? Until then, your best bet may be other types of business efficiencies: fuel cards that don’t lock you in to a particular station, or ones that lock in a price, consolidating routes, routine maintenance or some type of fuel management program to control unwanted purchases and expenses.
It’s going to be a long road, but it doesn’t have to be a bumpy one.
To read the entire article, click here.
Tags: alternative fuel, Fleet Owner, gas prices, hybrid
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Fleets Seem to Be on the Road to Recovery
Tuesday, March 24th, 2009
As an industry that is truly at the heart of America’s growth, fleet and trucking businesses usually feel the brunt of every twist and turn the economy takes. 2008’s roller coaster gas prices hit the fleet industry hard, and literally thousands of trucking businesses were forced to file for bankruptcy.
However, trucking companies that consolidated and found ways to run their fleets more efficiently not only have been surviving in this economic climate, they have been one of the few industries to actually be in a position to hire.
In an article posted on MSNBC.com that is part of an on-going series of reports on the re-invention of America and American business, trucking company managers say they have seen all walks of life, including white collar and blue collar professionals, college educated bankers and corporate executives, applying for jobs as drivers.
Fleet managers are reporting that job inquiries are up between 40-50%, giving them the “pick of the crop” for drivers where there used to be a shortage.
It is an interesting trend and one that could have an impact on your business as well, from hiring to making you look at ways to run your business more efficiently.
And to read more of the MSNBC posting from the article “Downturn Puts the Trucking Industry in the Driver’s Seat,” click here.
Photo copyright of TomSaint11
Tags: economy, fleet managers, gas prices, hiring drivers
Posted in Industry News | 1 Comment »
Spring Showers Bring….Higher Gas Prices?
Tuesday, March 24th, 2009
Spring time brings warmer weather, longer days, and historically, higher gas prices. Fuel prices tend to begin to climb each year right around this time, reaching their peak around Memorial Day when many motorists are hitting the road in high numbers.
This year, however, could turn out to be a little different if the price of oil, a key factor in the price of fuel, continues to remain low. Oil prices have remained relatively low due to lowered consumer demand.
The Energy Information Administration reports that the weekly demand for fuel has declined for the last four weeks. Gas price increases have been fairly stagnant due to the struggling economy and job losses, ultimately which have resulted in consumers driving less. The EIA predicts that because of this, the national average will remain close to or slightly under $2 a gallon.
Let’s hope that they’re right and we never return to the days of over $4 a gallon at the pump, since we can all use that extra money in our pockets.
Read the entire article here.
Tags: energy information administration, gas prices, oil
Posted in Industry News | 3 Comments »
Spokane Man Pays $550 Million Per Gallon for Fuel
Thursday, March 19th, 2009
Remember last summer when we thought $4 a gallon for fuel was bad? Well, one man in Spokane, Washington recently found out he paid $550 million per gallon when his bank alerted him to an $81 billion dollar charge on his account.
Juan Zamora thought he was putting $90 worth of gas into his car, until his bank alerted him of an $81 billion dollar charge. Yes, that’s billion, and yes, the bank tried to put it through. Zamora tried calling his bank, the gas station, even his card provider to get the charges reversed.
After a few sweat-inducing days with -$81 billion in his account, they finally traced the charge back to a computer error. The gas station indaverently used the station’s merchant ID as the amount.
Word to the wise: you can set spending limits with a fleet fuel card so you have 81 billion less things to worry about.
Tags: controls, fleet card, fuel prices, gas prices
Posted in Uncategorized | 1 Comment »
