Fuel Costs – How To Survive And Still Pay The Gas Bill

That very situation is facing each and every one of us today. The only difference is that this time it is the oil companies instead of the chemical companies, and there is absolutely no alternative to purchasing. We must have fuel for our trucks and equipment or we have no business.

During the past few weeks we have all noticed the rapid escalation in fuel prices at the pump. We have all been hoping that the increase would be short term and prices would retreat to previous levels. Unfortunately, the decrease has not taken place and instead prices continue to increase. The national average as of March 29 was $1.55 per gallon with reports that prices could reach $1.80 by summer, according to the Energy Information Administration.

We are quickly reaching the point that the industry must react or many of us will not be around next year. None of us can simply absorb fuel increases of 22 percent to 54 percent. Hopefully this article will make some of you begin to think and avoid being shocked next December when you discover the profit you anticipated doesn’t materialize.

What can we do? What are our alternatives? Can prices be changed at this time when contracts were just put in place? These are all difficult questions, but they are questions that each of us must address. How do you address these issues? Perhaps learning from other industries is the way to come up with a plan for the green industry.

American Airlines recently began adding a "fuel adjustment charge" of 3 percent on all tickets. The other airlines followed suit. FedEx and UPS have started adding a "fuel adjustment charge" on all package deliveries. Truck lines throughout the country are now doing the same thing.

The green industry must take similar measures to counteract the increase in fuel costs. There is no way that we can absorb the total increase. Whether it is "Temporary Price Increase," "Fuel Adjustment Charge" or other means, we all need to address the issue now.

The biggest problem facing us is fear. We are all afraid that we will be the only company to take a step of this type. If you are uncertain, get on the phone and contact your friends in the business. Discuss your concerns and you will probably be surprised that they have the same concerns also. We need to all join together to address this problem that faces us all. All of us have the same problem. None of us are alone. Those of us in the green industry must stand-up and take control of our destiny today.

The following chart will show you exactly what the current and projected fuel increases are doing to your business. Review how much your company spent on fuel last year, and then see what the fuel increase will mean to you this year.