One of the major expenses all fleets need to address is fuel use, especially if they're not currently using vehicle routing software that allows them to optimize miles driven and reduce diesel and gasoline consumption. However, new reports indicate fuel costs may decline over the coming months, meaning transportation companies using route optimization software may be able to cut expenses even further.
Lower prices could be good for fleets
Diesel prices have dropped in recent weeks, according to the United States Energy Information Agency (EIA), which stated diesel could be as low as $3.94 per gallon this summer, a slight decline from last year's summer average of $3.95 per gallon. Even more significant drops are expected as the months go on; the EIA predicted diesel prices will plummet to an average of $3.78 per gallon in 2014.
These price declines may also apply to fleets that rely on smaller, gasoline powered vehicles. The EIA revealed its predictions for gasoline prices for this summer are also lower. The agency reported drivers will likely see an average price of $3.63 per gallon in the coming months, compared to last year's summer average of $3.69 per gallon.
While the projected difference in price for the coming summer may seem insignificant, the amount could play a major role in helping fleets limit their operational expenses, especially if they're already using technology to help further reduce spending. Many fleets are currently utilizing routing software to help them limit fuel use and miles driven, as well as streamline the route planning process and free up fleet managers to complete other tasks. These benefits, especially when combined with lower fuel costs, can help a company better manage expenses and remain competitive.