Yes, crude oil had its biggest weekly loss in terms of dollars since 1983. 5 straight days of loss has brought crude oil down to a Friday close of $97.47 a barrel. You might ask yourself why are my diesel fuel prices still high? It will take a few weeks for it to hit the retail market. For the week crude lost almost $17 a barrel. For every dollar crude goes up or down it relates close to 3 cents a gallon for diesel fuel prices or gas prices. I hope a light bulb is going off in your head right now because yes a $17 loss to the barrel means diesel fuel prices should go down 51 cents per gallon and the same is true with gas.
Fuel management, oh yes you need it now more than ever. Fuel vendors can't make as much money when diesel fuel prices are going up as they can when they are going down. In fuel world lingo it's called a "sticky down". Does your company know how well it is managing fuel expenses? Do you know the margins you are paying or since fuel prices went down this week will your fleet fueling vendor be making a whole lot more off of you going forward. Let's fast it, with diesel fuel prices as high as they have been, your company is thrilled to see 25 cent savings. Wouldn't it be nice to see all of the fuel savings.
We believe fleet fueling pricing will head even lower. We are looking at a possible low $90 a barrel by the end of the month. And even lower possibly middle $80's by the end of June if not soon. So no chicken little, the sky is not falling. It's the speculators falling off the band wagon.