Since the energy crisis of the 1970s, the price of fuel for automobiles has been dependent on global supply and demand. In the early days of the pandemic, as with vehicle orders, gas usage plummeted, along with the price. With the ebbing of the shutdowns, demand quickly rebounded, boosted by pent-up demand for business and leisure travel. Like semiconductors, oil production takes time to ramp back up and oil producers have been cautious about releasing too much product into the market causing a large price drop.
The soaring costs over the past two months have been a result of the sanctions on Russia which have impacted the global market. Unfortunately, prices may be further impacted by the upcoming summer driving season. However, even at current levels, when adjusted for inflation, the price of gas is not at an all-time high. Although prices are not at an all-time high, they are higher than they have been in the last couple of years.
In addition, according to U.S. East Coast media reports, the region is experiencing low diesel inventory. No restrictions have been placed on purchases, but supply is being monitored closely.
Navigating the Fuel Supply Chain Challenges
While these constraints on the supply chain are outside of our immediate control, the best course of actions are to:
Be proactive and plan accordingly.
Look closely at your budgets and be sure you have adjusted for current pricing.
Consider requiring your drivers to refuel at the end of each shift to help combat pricing fluctuations and potential supply issues.
GM truck orders need to be placed by Friday, May 27. GM predicts that truck order volumes will be high and order banks will close quickly. Wheels Donlen is taking the necessary steps to help you with GM truck orders.
We’re excited and proud to share that we’ve been honored with a coveted Gold Stevie® Award in the “Company of the Year” category from the American Business Awards®. Read our press release to learn more about these awards and what our CEO has to say about the recognition.