Fuel Lines Critical News _ Infor by fjhuangjun


									Fuel Lines
Critical News & Information for Businesses
that Depend on Fuel and Fuel Services

Volume 5-08

         In This Issue
         Sokolis Solutions
                                                       OIL CLIMBS
  Recommendations To Reduce
  Your Fleets Carbon Footprint
                                                       "The Ides of May"
            DOE prices

           OIL CLIMBS
                                      We have all heard the expression, "The Ides of
            Testimonial               March", a metaphor for impending doom. How about
                                      "The Ides of May"? Since the close of business on
 How Much Worse Can It Get For        May 1, crude oil has surged up from $112.52 bbl to
            Oil?                      $124.24 bbl, that's an 11% increase. Gas has risen
                                      from $2.8782/gallon to $3.1705, this is a 10%
   Is Fuel Pressure Driving You
                                      increase. Heating oil (which diesel is priced
                                      from) went from $3.1170/gallon to $3.628, a 16%
 Dear Sokolis,                        increase. All of this change occurred in 15 days.

 Sokolis Group wants to bring you                   National Retail average
 value along every road and issue
 you travel. As with all of our                            May 1          May 15
 issues we try to keep it brief and
 informative. For anyone buying
 fuel today, none of us has seen a               Gas       $3.603         $3.776
 more difficult time. A company
 like ours makes its money by
                                                Diesel     $4.177          $4.455
 helping companies buy their fuel
 better and we have never been

                                      Industry experts predict the National Average gas
 Daily price changes of .05 - .20
                                      price of $4.00 could be just a couple of weeks away
 cents per gallon make
                                      with states like: California, Connecticut, Illinois,
 it challenging, even for experts,
                                      Indiana, Michigan, New York and West Virginia
 to make sure they are buying fuel
                                      already paying in the high $3.90's a gallon. The
 at the right price.
                                      prediction for diesel is that it could top out at a
                                     National average of $5.00 with states like: California,
Ideas for future issues are          Connecticut, New York, Pennsylvania and Rhode
always welcome, along with any       Island are already above $4.65 a gallon.
                                     The volatility in the market is crazier than ever with
                                     Thursday's price swings more than $5.00 a barrel for
Additional fuel saving tips can be
                                     crude and up 7 cents in heating at one point and
obtained in our Archived Issues.
                                     down 7 cents at another to end at one penny up.

Sincerely,                           We had all better load up on the Tums because it is
                                     going to be a wild ride.

Glen Sokolis
gsokolis@sokolisgroup.com            John Maher, Director of Purchasing, Performance
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             Press Release
           Archived Articles         How Much Worse Can It Get
               Contact Us
                                     For Oil?

                                     How much worse can it get for oil in the short term?
                                     Let's count the latest news that seems to be driving up
Sokolis                              the prices.

Solutions                            1. Goldman Sachs came out with a major report
                                     predicting a possible oil super-spike to $200. per
Fuel Survival Kit                    barrel and OPEC President Khelil agrees.

         Improve Routing            2. Rebel attacks further curb the supplies out of oil-
         Stop Idling                rich Nigeria.
         Quality Fuel Card
         Stay Informed about Fuel   3. The U. S. Economy is stronger than expected,
         Tire Pressure              pushing up demand expectation. Of course, each
         Fuel Expert; In-house or   time the dollar falls a penny, the price of a barrel rises
          Outsourced                 by $4.00 and vice versa.
         Prevent Fraud; it's bad
          enough the prices are
          sky high                   4. The election year has U.S. politicians talking about
         Use Manufacturers          a gas windfall tax and tax amnesty.
          Recommended Engine
          Oil                        5. Venezuelan production is off on strike and Hugo
         Review Fuel Surcharge      Chavez has fired over 20,000 oil workers.
          Program or Consider
          Using One.
                                     6. The U.S. and Iran are fighting about nuclear

                                     7. Mexico has newly seen supplies from a major fall
                                     faster than expected.
Recommendations To
Reduce Your Fleets
Carbon Footprint:                      8. The U.S. summer driving season is set to begin.

1. Evaluate and reduce out- of-        9. Sleeping giants: China, India and the Middle East
route miles                            continue their large thrust for oil.

2. Increase asset utilization          10. Does anyone know when the Hurricane season
3. Use the right truck for the right
route and load demand
                                       There was a time when people thought that $80/
4. Set speed governor to no            barrel was a high price for oil. Sokolis Group has had
more than 68 mph                       clients tell us that price was too high to hedge
                                       product. Heck, we probably didn't disagree. Who
5. Join                                wouldn't want that $80/ barrel of crude today? In
                                       October 2008 are we all going to be saying who
                                       wouldn't want some of that $125/barrel crude?

                                       We are in a time, just like the late 1990's with the tech
                                       sector, where in our minds we all though how could a
                                       start-up business with a pro-forma revenue have a
                                       higher market cap than GM? Well we all enjoyed it
DOE Prices                             while it lasted. I am just not sure if we already
                                       experienced the good times or are these prices or
as of May 12, 2008                     higher a reality.

                                       Click here to continue
US = $4.331

                                        Thinking Outside The Box
East Coast = $4.377                    "When costs increase for everybody, you get a huge
                                       competitive advantage if you do something just a little
New England = $4.463                   bit differently," says Z. John Zhang, professor of
                                       marketing at the Wharton School, University of
Cntrl Atlantic = $4.516
                                       Is Fuel Pressure Driving
Lower Atlantic = $4.310                You Crazy?
Midwest = $4.298                       Check Your Tires!

GulfCoast = $4.268                     According to the TMC of the American Truck
                                       Association only 43.6% of all tires are inflated within
                                       five PSI of proper air pressure. In the same study
Rocky Mtn = $4.276                     21.6% of all vehicles had on tires under-inflated by 20
                                       PSI or more. And you thought your fleet was on top of
                                       this? Another recent industry study from National
West Coast = $4.454                    Highway Traffic Safety Administration states that 30%
                                       of all vehicles including fleet cars had at least one tire
                                       that was 8 PSI or more under-inflated.
California = $4.547
                                       Does this cost your company money? You bet it
                                       does. A lot of money. Tires that contain too little air
 NOT A SOKOLIS GROUP                   can lower your fuel economy by about .4% for every
       CLIENT?                         one PSI drop in pressure. Low tire pressure affects
                                       fuel economy by increasing the tires' rolling
Contact us online or call      resistance, which makes the engine work harder to
     267-482-6155              move the vehicle. Proper tire inflation can help
   to request a free,          increase fuel efficiency by up to 3.3%. You may ask
                               yourself so how do I get there? Well it depends on
      preliminary              what type of fleet you have, but here are some tips
  savings evaluation.          from several leading companies.

It's never too late to start
 saving money. Find out              Use a good quality digital tire pressure
 how much you could be                gauge. Have your driver check the pressure
                                      daily as they go through their pre-trip on a
                                      truck. Since your fuel cost is more expense
                                      than labor, its better to be safe than sorry. On
                                      smaller vehicles or cars have them check
                                      it once per week.
                                     FMCSA strongly suggests tire pressure
                                      monitoring and automatic inflation systems.
                                      The ROI on these devices for an average fleet
                                      was between one and two years but that was
                                      when fuel costs were $3.50 a gallon. Its much
                                      quicker now that we are paying roughly a
                                      dollar per gallon more than that.
                                      Alignment- have it checked make sure
                                      everything is rolling in the same direction.
                                     Tread -low tread will not help your fuel
                                      economy or your operation. Also, check for
                                      uneven wear, cuts, gouges or bulges in the
                                     Load carrying capacity-make sure the tire
                                      matches the job.
                                     Tire Replacement- when needed, try to
                                      replace a pair if possible. Clearly, on bigger
                                      trucks and trailers, that is not always practical.
                                     Educate Drivers
                                     Invest in Technology
                                     But everyone a digital pressure gauge
                                     Drive Safely

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