Fleet fuel insights over the holiday season

As we all gear up for the holiday season, one industry works steadily behind the scenes, making sure the magic of the season reaches every doorstep: the trucking industry. Driving along America’s highways and tackling inner city traffic, truckers play a pivotal role in keeping the spirit alive. While the season is a time for celebration and family gathering, behind-the-scenes truckers are battling tight schedules, wintry roads, logistical challenges, and one other pressing issue – fluctuating fuel prices.

Fleet managers are optimistic as fuel prices continue to drop nationwide

After an all-time-high in 2022, fuel prices have been on a considerable decline. The U.S. Energy Information Administration reported a continued drop in on-highway fuel prices nationwide. As of November 27, 2023, regular gasoline has dropped to $3.24 per gallon, while diesel fuel prices dropped to $4.15 per gallon – numbers not seen since 2021.

This unexpected but welcome decline sparks a sense of hope as trucking companies enter the holiday season. The reduction in fuel prices not only eases the financial strain on trucking companies but also holds the promise of potentially lowering operational expenses, which in a time of high inflation and economic stress, is a gift.

AP News’ Wyatte Grantham-Phillips reasoned the drop to be caused by falling oil prices associated with various geopolitical tensions within the Organization of the Petroleum Exporting Countries (OPEC). As oil is a global commodity, international events like the Russia-Ukraine War, can be felt here in the U.S. 

Grantham-Phillips reported that “American oil production hit an all-time high of 13.2 million barrels per day, passing the previous record set in early 2020 by 100,000 barrels” and “average production has since remained at that level.” 

What can fleet managers expect for fuel prices during the holiday season?

One of the other contributing factors to fuel price fluctuation is seasonality – with the prices at the pump being historically less expensive during winter months. This means fuel prices should remain consistent for the remainder of the winter. OPEC is still in discussion about oil production cuts, which may affect fuel prices. Those discussions have been repeatedly postponed which may indicate disagreements amongst the members as to how to approach this impactful decision. Ultimately, the decisions made by OPEC will be a significant predictor for upcoming fuel cost changes and fuel management solutions, so consider following the discussion surrounding OPEC’s plans. 

How can fleet cards help you manage costs?

While fuel pricing is out of our hands, there are some ways fleet managers can control costs. Consider integrating a fleet card into your fleet operations to help reduce expenses and increase security including the threat of unauthorized purchases and fraud.

Some benefits to using a fleet card include:

• Managing fuel expenses
• Simplifying tax reporting
• Accessing a network of savings programs
• Spending transparency 
• Optimizing business efficiency with data-backed reporting

WEX is a leading, global fintech solutions provider, simplifying payments and back-end business processes in the fleet management, benefits management, and corporate payments areas. To learn more, please visit the company’s About WEX page.

Apply for a fleet card today!

Sources:
U.S. Energy Information Administration
AP News