Ask the Fuel Expert

Times are tough and money is tight. So like most companies affected by the global economy, survival takes priority over being the next environmental hero. How can you invest the time and money necessary to make our planet greener while your company is struggling? It’s no secret that many “green” initiatives require massive capital expenditures and changes in policies by government, but is there a green solution that actually saves you money.

Are you ready for some good news for a change? (Is it just me or does it seem that unless you’re reporting bad news it’s not seen as serious journalism?).

Clean air policies are starting to have an impact and as far as I can see this is only the tip of the iceberg. In the last few years environmental issues have moved from the background to the forefront for many industries and while we have a long way to go it looks like we have made some progress. And the best is yet to come if we all work together to cut toxic emissions.

A couple of months ago we talked about the fluctuating world price of oil and how it effects prices at the pump. In that column we talked mostly about supply and demand and mentioned how oil is traded as a commodity. Well there is a lot more to that story, a whole lot more.

How’s business? Most of us have seen cut backs in the last few months, but today I have some good news for you. Better fuel management will make you money. And you don’t have to look very far. Extra cash is right there on your company’s spreadsheet masquerading as an expense.
Fuel prices may be lower but now is a good time to get fuel smart.

Over the years harsh winter weather has crippled fuel supplies bringing industry to a grinding halt. While most companies scrambled to locate fuel during these crises, other companies didn’t even feel the pinch. The reason? They had a Fuel Strategy that assured fuel supply and reliable delivery 24/7, 365 days a year.

How do you measure profit in your business? Do you calculate profit by analyzing every expense or do you just look at the bottom line? Both approaches are very important, particularly in the current economy where we are all trying to micro-manage each expense for the best possible return.

Every time the price of oil drops, I get asked why the price at the pump stays high. With twelve years in the fuel business, it seems I’m always being asked “aren’t the two linked?”

The short answer is yes they are definitely linked, but as you guessed there is a longer answer. When oil prices skyrocketed earlier this year, the pump prices kept pace. Now that the barrel price has come down, the pump price is falling too, but slowly. You might call it a controlled descent and there are several reasons for it.

The upheaval in the financial markets this past month has added a pile of new pressures
for business owners and managers. The hot buttons are managing cash flow and operating costs while also holding onto people and business volume. But, amid this re-ordering of priorities, is anyone still thinking about the commitment to become more environmentally conscious or has that been swept under the boardroom table as an unnecessary frill?

How many different jobs do we all do in a day? If you’re like most managers, you wear a lot of hats. You probably manage people, resources, equipment, timelines, budgets and more. Among businesses in fleet or construction, most have general managers, human resource managers, equipment managers and fleet or operations managers; but almost none has a Fuel Manager. Perhaps not surprising, but consider that fuel is now the highest operating expense in these industries – higher than equipment and even labour.

Remember the good old days…about a year and a half ago? Prices at the pumps were hovering below one dollar per litre and they stayed the same for weeks. Well the good old days are gone forever and today we live in a world where fuel prices seem to go up by the hour. Now pundits speculate on living with oil prices running up to $200 US per barrel.

As consumers many of us have adjusted our lifestyles. We try to drive less. Some have chosen to car pool, while others get rid of their gas-guzzlers and opt for more fuel-efficient vehicles including hybrids.