Analysis of 2015 Fleet Fuel Spend & 2016 Forecast
In the November Automotive Fleet, experts from across the industry examined fleet fuel spend for 2015 and made predictions on what may happen in 2016. Overall, fuel is the largest component of total fleet operating costs. The stability of fuel pricing over the past 24 months has been the primary factor contributing to keeping fleet operating costs flat. Not only that, but lower fuel prices have helped decrease overall fleet expenses. As with most commodities, however, fuel prices can fluctuate, driven by seasonal driving demand and weather conditions.
Steve Durdin, manager of garage management systems (GMS) and fuel, noted “On the one hand, lower retail prices for both gasoline and diesel have been a welcome relief for fleets that, in some cases, have seen their costs reduced by 25-30 percent. On the other hand, industries directly or indirectly attached to the price of oil (upstream to downstream) have experienced a real squeeze in revenue and cash flow.”
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