What on earth is going on with fuel costs? Just last month, the Department of Energy offered trucking companies some welcome news by downwardly revising their diesel price forecast. What a difference one month makes! Now analysts are predicting it will cost drivers nearly 10% more to fuel up.
Transportation Factoring and Fuel Prices
The beginning of summer boasted six weeks of declining fuel prices. A recent Overdrive Online article puts a damper on fuel price optimism. Now, the Department of Energy is reporting that the average price of on-highway diesel has risen two weeks in a row. Average diesel prices went up in all parts of the U.S. The national average price, $3.867, is 17.2 cents higher than the average price for the same week in 2012. Truck drivers will find the priciest fuel in California with the average diesel price of $4.065 per gallon.
The tension in the Middle East is partly to blame for the oil price surge. However, NBC News reports that inventories of domestic crude oil are low, which is driving up demand and cost.
Those in the transportation field have no choice but to weather the storm of high fuel costs and hope they fall sooner than later. Transportation factoring can help combat the rising diesel costs. Transportation factoring offers fuel advance programs that provide fuel cards. Truck drivers can use fuel cards at pretty much all major truck stops nationwide to receive discounts on fuel with every fill-up. Not to mention, transportation factoring companies offer fuel advances that often advance 50% of the invoice amount upon load pickup. This way, trucking companies can take on new business without worrying about waiting on customer payment to cover fuel costs. Essentially, factoring for transportation provides the cash trucking companies need to stay on the road and accept more loads – with no debt to repay.
Learn more about the benefits of fuel advance programs
