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.
After hitting its peak in October 2018 the cost of fuel at the pump has dropped to below pricing at 1st May 2018. This is largely due to the increase in the NZ Dollar against the US Dollar, and, more importantly, the tumbling price of crude oil.
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.
As a result of the strengthening of the NZ Dollar, along with the drop in Crude Oil prices, the cost of fuel has dropped by back to its pre-May 2018 pricing, reflected in the graph below.
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), there have been months with significant impact on cost and others – like November 2018 – with less impact.
Right now (early December 2018) OPEC producers are seeing a continuing fall in revenue. In recent days Qatar has pulled out of OPEC and the scheduled January 2019 meeting is now on 6th December 2018.
Saudi Arabia, OPEC’s leading producer, has signalled a cut in production is on the cards and, in a surprise move at the G20 Summit, has reached an accord with Russia on production levels. As a result, it is likely that increases in fuel costs will be back on the table in the New Year.
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.