Lock in Low Fuel Costs with Telematics
As a fleet operator, today’s low fuel prices are a blessing to the bottom line. In a business where success is so closely tied to fuel prices, most are asking themselves “how long will this last”? What they should be asking is “what can I do to ensure this lasts?”.
Experts disagree on exactly how low fuel prices will go, when they will bottom, and when they’ll revert to the mean. The discrepancies in opinion relate to the variety of factors affecting pricing and the geo-politics of oil production and resulting supply and demand. However, the laws of economics and the profit motivate of Big Oil dictate that today’s low prices won’t be around for long.
In fact, the former CEO of Shell Oil, John Hofmeister, predicts prices could double by the end of 2016, stating “What’s happening now is we’re shutting down drilling rigs. Not completing the wells that have just been drilled. And, we’re going to eat off the surplus oil out there until probably mid-year.”
Translation: Incremental drilling doesn’t make sense at today’s prices. They are taking steps to decrease supply, which will drive prices up.
So, what are you to do as a fleet operator facing a fuel budget surplus? Consider investing your fuel surplus in technology that will help you lock in a lower fuel spend, even after prices return to the long-term norms.
Thingtech’s Telematics solution, TracIT, and route optimization solution, RouteIT, are proven to empower business leaders to reduce fuel spending through lower idling, increased fuel efficiency, and lower overall mileage. Don’t squander a great opportunity to invest in your business, lock in lower costs, and out-flank your competition.