No matter what kind of operation you run, the price of gas will dictate the effectiveness, reliability, and overhead costs of your entire business. While these prices are not always predictable, certain factors during the year will make it more or less costly.
The Average Cost of Gas
Gas in most American cities hover around an average of $2.70 per gallon. Assuming that a driver covers a minimum of 3,750 miles a month with a conservative estimate of 6.5 miles per gallon, a budget of $1,557.69 per month would be a bare minimum requirement.
The current average for diesel fuel in the United States is right around $3.00, pushing the fueling cost per month up to $1,730.77.
The weather will often have a significant impact on the fluctuation of gas prices, particularly during the summer and winter seasons. Summer fuel, which includes the days past Memorial Day, will generally cost more than winter blends. This is related to the additives in the oil and certain EPA guidelines.
It’s important to continuously check the prices of gas in your area to help create a more accurate budget. The US Energy Information Administration offers an updated chart with gas information every two weeks.
Using CFN Cardlock Programs to Manage Budgets
Fuel costs can be steep, especially when poor management practices contribute to rising costs. Using the wrong management programs can increase overhead costs by as much as thirty cents on the gallon.
Increases in aggregate costs can create costly impacts on fleet businesses. Many of these increases can be attributed to:
- Inconvenient fueling locations.
- Making unauthorized purchases.
- Purchasing unnecessary high-grade fuel.
A CFN Cardlock is a method of cutting back on fuel expenses throughout the year. These help to control aggregate costs before they become unmanageable.