We are accustomed to seeing price hikes on diesel every summer. We got an early gift from Uncle Sam this spring; and not a pleasant one. Fuel is already climbing past $3.10 a gallon, and with the normal summer hike, who knows where it will end up?
Actually thanks to several factors, it could be worse this year.
Here’s what’s happening:
- Covid restrictions are Loosening
- OPEC has been tightening exports around the globe
- The industry believes that the new US administration will restrict drilling throughout the united states driving up prices on the current supply
- The refineries are switching over from winter to summer blends and in the process, cut production every year around this time for a few weeks
Here’s the kicker in all of this, fuel costs make up about 40% of operating expenses (the single largest expense). Given all of these factors, the expectation is that diesel will climb above $5.00 a gallon.
There are a couple of things you need to keep in mind as you head into the summer months.
- Cash Flow will be even more critical this year Is your cash flow stable enough to keep up with the ongoing price hikes? Are you ready… do you have a way to ensure you will have the operating capital needed to keep running?
- Save Costs on Fuel Wherever Possible: This is going to take a huge bite out of your profit this year. We can help take some of the pain away. Get our fuel card today and take advantage of discounts at over 8000 fuel stops across the country. Our fixed and cost+ discounts will help you save up to 60 cents per gallon, depending on the fuel stop. And, that’s off the cash price! Don’t take on these fuel price hikes alone.
Don’t delay. Partner with Express Freight and make sure you are ready to weather the price hike storm with stable, predictable cash flow! Our freight bill factoring program can help ensure you will have cash from delivered loads when you need it.
Call one of our sales reps today and get set up with our program so you will be ready to weather the storm.
Express Freight Finance – smarter by the mile.