Fuel is an ever-increasing operational cost for all businesses. In the current pricing climate, businesses who use large volumes of fuel are facing significant increases in their operating costs simply due to fuel price increases. Fuel management is important for managing the impact of these costs.
Throughout business today, people use data to make informed decisions. Our aim is to provide businesses who use large volumes of fuel, transparent data and insights on their fuel use for them to action decisions about their business in a timely manner. This includes tracking fuel prices for businesses so that they can understand the impact on their business of fuel price increases.
Since 1 May 2018, Fuel.iT has tracked the price of retail diesel (excluding the Auckland Regional Fuel Tax), as a pump average. The graph below shows this tracking in $NZ and is updated weekly.
With schools returning and ‘normal’ service being resumed in the business world, the pressure from external influences and internal demand have led to price of fuel sitting 1.2% above the May 1st 2018 benchmark figure.
Since 1 May 2018, the percentage increase in the price of retail diesel (excluding the Auckland Regional Fuel Tax) had risen inexorably to close on 25% more than 1 May benchmark.
Diesel pricing move 0.4% above it’s May 2018 levels this week the second week running that fuel is above the 1st May 2018 benchmark price.
If your business uses 500,000L or more of diesel per annum, this means your costs have fluctuated by as much as 18% since 1st May 2018.
Based on the retail diesel pump average price (excluding Auckland Regional Fuel Tax), we have seen a roller coaster 9 months and this week the cost of fuel has risen above May 2018 levels.
As you may have seen Winter has increased it’s icy grip in the Northern Hemisphere with some parts of North America and Europe recording their lowest ever temperature. Elsewhere, including in New Zealand, record high temperatures are being recorded. What does this mean? More strain on crude prices as heating and transport use increases in the Northern Hemisphere.
OPEC has also reduced production, putting pressure on crude prices. The recent unrest and political upheaval in Venezuela has seen production drop to less than 800,000 barrels per day.. Venezuela normally produces some 2.25m barrels of crude a day the 6th largest output in OPEC, the impact of this production decline will be felt over the next few weeks as stocks at refineries begin to fall.
Understanding and managing those impacts is where Fuel.iT can assist you to prepare for the future.
Fuel.iT can help you with tracking your fuel, using your fuel resources more efficiently
and enable you to manage the impact on your business of the cost of fuel as it fluctuates.