Diesel Direct

Understanding the Price of Diesel

January 31, 2014

In the last several weeks, fuel prices have spiked to historic levels across all regions of America. This type of event is similar to what occurred in both the fall of 2007 and the winter of 2010. The reasons for these increases are complicated and all fuel users, including Diesel Direct, are impacted by these prices. We believe this situation will be temporary. Listed below are several quotes from articles published by some major fuel reporting media outlets that shed some light on the situation.

“The price of oil closed above $94 for the first time in two weeks on a big drop in supplies…The drop marked the seventh consecutive decline in US crude oil supplies.” (January 15, 2014) ABCNews.

“Brutally cold weather this winter, particularly in the densely-populated U.S. Northeast, continued to boost demand for heating fuels, driving natural gas and oil product prices higher.” (January 23, 2014) CNBC.

“Diesel and gasoline prices are increasing in the U.S. even as monthly crude oil production is expected to exceed the amount of U.S. crude oil imports later this year for the first time since February 1995.” Kilcarr, Sean (December 31, 2013) FleetOwner.

Until markets stabilize, we would like to offer some ideas to lower fuel consumption:

  1. Drivers should turn off their engine while making deliveries.
  2. Analyze your existing truck routes and look for efficiencies.
  3. Make sure your Service Provider is performing PM inspections on a timely basis including draining your water separators, removing water from your saddle tanks, and changing your filters. Vehicles with clean filters and clean fuel injectors burn fuel more efficiently.

Conservation and timely maintenance of your vehicles will yield savings to your bottom lines. We hope you find these tips helpful! Feel free to contact us with any questions or comments at info@dieseldirect.com or by calling 1-888-900-7787.