In these past few articles, we've covered the effects of inflation on many aspects of the pallet industry. Many of our articles have been focused on general knowledge. In this article, we will go over what affects gas pricing and how you can potentially save.
Throughout the Pandemic, fuel prices have been a big concern for the general population and shipment-based companies. In April of 2020 gas prices had fallen due to the sudden decrease in travel needs. On average the cost came to ~ 1.94 per gallon that year. Comparing that to June of 2022, prices reached an average of $5.02. This was an approximate increase of 159%.
Aside from the boom of travel, and the overall increase in inflation, a major contributor is politics. The global oil market has always been "under fire" in one way or another.
On March 8th, 2022, the current U.S. President issued an import ban on All-Russian fuel and energy sources. While this decision was done in hopes of combating Russia's invasive war efforts, many States saw a 50% surge in gas prices. This was in part, because "8% of US airports come from Russia."
Of course, this is something that affects the general public and companies. But how does this affect the pallet industry directly? Well, a majority of pallet manufacturers also do shipping. This most likely isn't surprising. However, this of course can contribute a hefty amount to a company's monthly budget, and because of this, we've found 3 ways that companies and the general public can save on fuel costs.
#1) Fill up on the cheapest days of the week.
Recently Monday and Friday are the 2 cheapest dates. Several apps have recently been released to track real-time prices. This however is based on previous trends so owners and drivers need to use their best judgment. If you or the driver is on the road you'll most likely need to fill up. Using an app is a great way to quickly find stations with the best prices. You can also use Google maps or Waze and then filter by prices.
#2) Drive patiently.
Abiding by the speed limit, accelerating slowly, and coasting more are not only safe ways to drive but more cost-efficient. According to ‘FuelEconomy.gov’, “safe driving methods can boost your efficiency by 40%. With an average of 10% in stop and go traffic you can achieve a minimum of 15% when on the highway.”
#3 Keeping up with maintenance.
While it may seem small, tire pressure affects your gas mileage. The U.S Department of Transportation estimates that for every 1 PSI your tires are underinflated, you can lose 0.2% fuel. It may not seem like a lot but PSI can vary widely. Another part of maintenance is keeping the engine in good shape. Engine trouble can affect efficiency by 4%. Gas savings aside, ensuring that your engine is in good shape can make your vehicle last longer and avoid costly repairs.
According to npr.org on August 3rd of 2022, it was reported that recent gas prices have fallen to below $4. This of course is wonderful news. However, these tips, along with many others should not be dropped. "Experts warn that prices could rise again if people suddenly drop their gas-saving habits".
The bottom line is that; even if you don't need to save extensively on gas, these tips are a good habit that many should incorporate into both their business and personal budget plans.