The Price at the Pump
Industry analysts expect diesel prices to increase in the next six months and remain volatile throughout 2012 and into 2013. They also expect to see a wide range of prices throughout the U.S., driven primarily by demand within the U.S. and abroad.
Industry experts have revealed that the U.S. economy is recovering, so there is more demand for fuel—both gasoline and diesel. Other countries are recovering as well and they are using diesel.
On February 20, The Department of Energy’s Energy Information Administration reported an average diesel price of $3.96 a gallon. Prices are expected to increase 15 to 20 cents over the next six months. In the next year, industry research estimates diesel will be 20 cents higher per gallon than it is today.
According to Oil Price Information Service, diesel prices could go even higher, traveling as high as $4.35 a gallon in the next few months.
Because a significant amount of diesel is being exported—about 1.2 million barrels a day in February—prices in the U.S. reflect global prices, particularly on the coasts, and the U.S. is expected to continue exporting fuel. China's diesel consumption will dramatically increase in 2012, surpassing U.S. consumption within 18 months. In addition to China, India and other countries are growing as well. While exports could become a political issue, without them, it is likely that refineries would close and the U.S. would be importing gasoline.
Carriers and drivers may also see prices at the pump increase due to fuel tax increases, which are being discussed on both the state and federal level due to shortfalls in highway funding budgets.
For more information on how Penske Truck Leasing can help you save on fuel, contact your local Penske representative.
The Price of Crude
Crude oil makes up about 67 percent of the price of a gallon of diesel, so as crude goes up, so do prices at the pump.
In it’s February 2012 Short-Term Energy Outlook, the Department of Energy’s Energy Information Administration (EIA) said it expects the price of West Texas Intermediate (WTI) crude oil to average about $100 per barrel in 2012, almost $6 per barrel higher than the average price last year.
EIA said there is about a one-in-fifteen chance that the average price in June 2012 will exceed $125 per barrel, and about a one-in-fifty chance that it would exceed $140 per barrel. For 2013, EIA expects WTI prices to continue to rise, reaching $106 per barrel in the fourth quarter of next year.
By “Move Ahead” Staff
Utilizing its best-in-class route management techniques and technologies, Penske Logistics manages the inbound supply chain for PepsiCo’s four distribution centers in the U.S. and Canada that handle carbonated beverages, as well as a manufacturing plant in Arlington, Texas. Penske Logistics works to ensure the raw materials for carbonated beverage production reaches PepsiCo’s plants on-time, while monitoring supply pick-up, transit and timely deliveries.
The Association for Financial Professionals (AFP) recently released its 2012 Risk Management Survey. According to the group’s press release, responses were gathered from 435 senior finance executives about risks that concern them now and those most likely to cause uncertainty over the next three years.
Major supply chain disruption concerns have clearly moved to the boardroom level. Troubles for several leading manufacturers and suppliers stemming from the 2011 tsunami and earthquake in Japan helped generate these responses from executives in the Penske-Northeastern survey:
vice president of logistics engineering for Penske Logistics (photo right) advises manufacturers, suppliers and other businesses to take these key factors into consideration to help reduce the impact of future supply chain disruptions:
Mike Duff, 
While Meyer’s had a distinguished logistics career, SAE Deedra Froemming (photo right), who’s based in Kennesaw, Ga., is settling into a new role.
The company will take part in 16 other regional and national virtual career fairs, through November. Penske has had success in hiring veterans in a wide array of jobs.
As you can see in the graphic provided, those areas are located around the front, back and sides of the truck. In addition, when approaching a truck from behind, or driving behind a truck, give yourself some extra space. Remember, if you can't see the truck driver in the truck's mirror, the truck driver likely can't see you, either.