Gas prices in 2016 started low, and ran up over the course of the year. Fleet managers need to prepare for gas prices to increase again in 2017 — potentially to their highest levels since 2014.
There are multiple factors contributing to the forecast of increased gas prices, but it’s safe to say that if your commercial fleet isn’t already taking advantage of gas savings with a fleet fuel card, there’s never been a better time to sign up and save on your fleet’s fuel expenses.
While gasoline forecasts are an indication of what could happen and not what will happen, there are several factors at play that impact the price at the pump.
Spring almost always sees a rise in prices as refineries first deplete the supply of winter blend gas, perform seasonal maintenance, and start production of the more expensive, clearing burning summer blend gas. According to GasBuddy reports, the national average might rise between 35-60 cents starting in mid-February, and peaking in May.
With fuel prices set to rise in spring, a fleet card helps your company save money in multiple ways. Not only will you save at the pump with rebates and discounts, you’ll also have access to real-time purchase reports so you can monitor spending and budget changes.
In November, the Organization of the Petroleum Exporting Countries (OPEC) reached a decision to scale back crude oil production. Compare this to 2014, when OPEC strove to produce as much crude oil as possible, resulting in plunging gas prices. The price of the oil and gas are affected by supply and demand, so the less oil produced, the more the barrels will cost, which in turn will increase the price at the pump.
Another factor to consider is a new presidential administration, bringing many unknowns when it comes to policy changes. While their stance centers around a pro-business, oil-friendly perspective, continuingly volatile conditions in the Middle East has the potential to drive gas prices up.
Gasoline and crude oil markets are complex, and there are several unknown factors that can end up driving prices up or down. Currently, GasBuddy reports predict that the average price of gas in spring of 2017 will increase over what we saw last year. Fortunately, when your fleet has a Fuelz Fleet Fuel Card, you can save between 10-15% on overall fuel expenses.
A Fuelz card can also be used for maintenance expenses through our network of national maintenance partners. Online management and reporting tools will also help you manage expenses, because you’ll be updated on every transaction.