The Truth about Oil Prices

In our forthcoming March issue, we look at ways operators can save on fuel cost, including options like 4Refuel, a fuel delivery company. Recently, company CEO Jack Lee answered a question looked at in our September issue: "Why fuel is priced the way it is?" In an earlier post on the same subject, he had looked at what supply and demand had to do with prices:

... unlike other retail products, fuel is also a commodity so supply and demand determine the price on the open market and ultimately at the pump ... While supply is abundant and demand consistent, prices are stable. But when supply is disrupted, short-term inventory is threatened and this affects millions of businesses worldwide. We quickly see demand surge and prices spike. And there are so many things that can interfere with supply.

Now, Lee looks at a recent episode of "60 Minutes" that examined how oil speculators are responsible for bringing up prices at the pump. Lee finds a lot in the report, but concludes:

As consumers, we can’t control the price of fuel, but we can control how we use and manage our fuel consumption. Many companies invest thousands of dollars each month using fuel – in fact, it’s the highest cost of doing business after labor.

While Stop Oil Speculation Now!, a political action group whose members included the National School Transportation Association, has temporarily slowed its efforts to curb oil speculation, the operators and technicians we've talked to say there's still plenty pupil transporters can do to reign in their fuel costs.

Below, a segment of Lee discussing his company's services: