Jacque New Pd 10617530

Fuel Prices

Feb. 21, 2012
Petro politics plays into rising cost of oil.

The price of crude oil is now over $100 a barrel, so fuel prices are climbing again. This time it’s petro-politics.

Iran has halted oil sales to France (who buys almost no Iranian crude) and Britain (who buys none at all) and has threatened to halt oil sales to other European Union nations. This is because the EU has announced a plan to stop buying Iranian crude in an effort to convince Iran to halt their nuclear program.

If the Europeans are already planning to stop buying Iranian crude, why should Iran’s threat to stop selling it to them raise oil prices everywhere in the world? I don’t know, but it shows how unpredictably fragile our lifestyle here in the U.S. can be.

Here’s a more predictable reality: If you’ve got it, a truck brought it. In fact, no matter what vehicle moves it, everything in the world that is moved from one place to another is moved by power derived from oil, including oil itself, so even a modest increase in the price of fuel is multiplied in every product’s journey from raw material to your hands.

OK, so rising fuel prices raises the price of everything and we’ll all feel the pinch, but how much you feel it depends on your point of view. How much more will you pay for an impact wrench because your tool man’s monthly fuel bill has gone up 25 percent? How much less will the tool man bring home anyway? How much will your own business suffer because even your loyal customers will drive less and therefore need service less often?

From the fuel shortages of the 1970s to the price spikes of just two years ago, we’ve been through this several times. It will hurt some more than others, but some things will change for the better; who could have imagined the speed and precision we get from our tools today? Who knows what kind of innovation will be spawned by 5-dollar-a-gallon fuel? The fact is, the price of mobility in all its forms has always been an expense for all, and most of the people working in this industry will figure out how to make a profit anyway.

About the Author

Jacques Gordon

Sponsored Recommendations

Ask the Experts: Boost Profitability by Capturing Body Repair Materials Billables

Quality body repairs on medium- and heavy-duty trucks depend on the use of specialized adhesives, sealers, and other allied materials. Unfortunately, many shops face challenges...

Fleet Maintenance E-Book

Streamline your fleet's maintenance and improve operations with the Guide for Managing Maintenance. Learn proven strategies to reduce downtime, optimize in-house and third-party...

Celebrating Your Drivers Can Prove to be Rewarding For Your Business

Learn how to jumpstart your driver retention efforts by celebrating your drivers with a thoughtful, uniform-led benefits program by Red Kap®. Uniforms that offer greater comfort...

Guide To Boosting Technician Efficiency

Learn about the bottom line and team building benefits of increasing the efficiency of your technicians in your repair shop.