Vehicle owners were warned recently that the recent low gas prices were not going to last, and they could be about to significantly increase.
This is because the lower demand for fuel around this time of year often lowers the price at the pump, but such downward trends do not last. In fact, it has already been reported that oil prices have increased; a hike which will soon be passed on to the pumps.
Businesses Should Be Aware of Coming Fuel Price Rise
Small business owners reliant on fuel may be able to stock up while the prices are low, or at least plan their budgets with the coming gas price rises in mind. For example, Florida gas prices dropped another penny recently, with some pumps offering even better discounts. With the state average hovering around $3.20 per gallon, a good 7% of Florida gas stations were offering pump prices under $3 a gallon.
However, this will be a short-lived period of low prices, so businesses should budget accordingly.
‘Upward Pressure’ at Pumps to be Restored Soon
Mark Jenkins, a spokesman for AAA – The Auto Club Group, said: “January gas prices are often driven down by lower fuel demand. Unfortunately, that downward trend at the pump may soon come to an end. Oil prices shot up last week and that could restore upward pressure in prices at the pump.”
The Auto Club Group also suggested ways that people can save money on gasoline, proposing drivers combine errands to limit driving time. You should also remove excess weight in your vehicle and shop around for the best gas prices in your community.
Other money-saving gasoline tips suggested by the group included paying with cash as some retailers charge more per gallon when a customer pays with a credit card. Also try to drive conservatively as aggressive acceleration and speeding minimizes your vehicle’s fuel economy. Another good idea is to ensure your vehicle is in good condition and properly maintained, as a tuned-up engine, new air filter and proper tire inflation can all improve a vehicle’s fuel economy.
Global Fuel Supply Issues
With the price of WTI (U.S.) oil increasing by 5% recently, focus has fallen on the global fuel supply issues that have caused the price increase. One of the biggest issues concerns the unrest in Kazakhstan. The central Asian country is the biggest uranium exporter in the world, and among the biggest oil and coal producers. Despite being a resource-rich country, Kazakhstan has suffered a lot of public protests in recent years which has affected the perceived reliability of their contributions to the energy market.
Other issues affecting the global fuel supply include logistical problems in Libya, as well as the country’s unstable political environment which has heavily impacted their oil production capability.
Get the latest headlines from Small Business Trends. Follow us on Google News.