With the price of oil continuing to plummet how will your business be affected by the sudden changes? Although the price of Brent crude oil has fallen below $50 a barrel for the first time since May 2009 consumers are still not feeling the full benefit.
Rockets and Feathers
It has long been known that as oil prices rise, petrol prices skyrocket as a result to generate the most profits. However, the same cannot be said for the plunging price of oil. Seemingly someone along the line is making a significant profit as oil prices fell by 58% since June 2014, but petrol prices only fell by 50%. The so-called ‘rocket and feather’ effect not only serves to hinder the development of business by steadily squandering their logistics finances, but also by instilling false hope that fuel is now increasingly plentiful and overtly affordable.
Over consumption and complacency during times of plenty are quite commonplace when they need not be. Evidence shows that the most efficient businesses are those that capitalise on savings at all times, not just when prices rise. Moreover, with recent AA monitoring’s suggesting that petrol prices are set to rise again after months of rapid decline, businesses should be wary that the benefits seemingly won’t last forever.
The Answer – Fuel for Thought:
Fuel is a topic that is never far from the lips of many business owners. It is often an essential business cost and the lifeblood for many. Despite fuel prices being at a 6 year low, ironically now may be the best time to develop a centralised fuel management strategy.
Like so many areas of cost management, what makes Auditel different is its approach to fuel management. Our holistic approach enables us to look beyond just the transactional and commoditised nature of fuel and focus on the big picture – that is providing your organisation with a tailor made cost management solution to the Total Cost of Fuel.
To see how your organisation can benefit from our Total Cost of Fuel management service please do not hesitate to contact us for an Auditel Fuel Health Check.