March 09, 2015
Rise, Fall, Repeat: The Story of Gas Prices
Written by Steven Stollery
Well, this has been fun, right? Fuel prices fall to their near lowest level in a decade and then abruptly rise again.
In some areas of Canada, the retail price at the pump had fallen to less than $0.69 a litre. As of writing this, the Canadian average had rebounded to $1.04 a litre in a little over a month. That’s still 19% less than prices seen a year ago when the average was $1.29 a litre but as you can quickly conclude, prices for any commodity are never assured and can fall as fast as they rise and rise as fast as they fall without seemingly an ounce of logic or warning.
Steep fluctuations in fuel prices at the pump have fleet managers concerned where they might go next. Fuel can eat up to 80% of the vehicle operating costs of a typical light truck fleet and therefore every shift in price has potential to impact budgeting and ultimately pricing for the goods and services the business delivers.
So, what can be done to minimize the impact that the price of fuel at the pump has on your business? A modern telematics system is a great place to start.
Telematics allows a company to track fleet vehicles with precision, but there’s much more to a GPS tracking system today than location tracking. New capability allows companies to positively impact fuel use with improved routing, reduced speed, and the elimination of aggressive driving and excessive idling. Making improvements in these areas alone will significantly reduce the fuel budget. Having an efficient solution will also help reduce greenhouse emissions, enhance safety, and improve customer service.
Even as fuel prices climb, fleet operators who use a modern telematics solution like Plug N Track GPS aren't as nearly concerned. They know that it isn't the price at the pump but the efficiency of the fleet that's key to long-term success.
Plug N Track GPS welcomes the opportunity to improve fleet fuel efficiency!