Motus Fuel Trend Report Finds Average Fuel Price is at Highest Point in Almost Three Years
Fuel Prices Now Account for 25.6 Percent of the Total Cost to Own
and Operate a Vehicle
Motus,
the premier vehicle management and reimbursement platform, released its
annual Fuel Trend Report, revealing key data related to current fuel
prices and industry changes that will affect prices over the next year.
The “2018
Fuel Trends Report” found that the average price for fuel in the
U.S. is now at its highest point in almost three years. The increase
corresponds to a steady rise in fuel prices since September 2017 due to
the rebalancing of oil supply and demand after a period of relatively
stable fuel prices.
“Summertime is the season of peak demand across the U.S. Over the past
three years national fuel prices have increased by an average of $0.18
per gallon between April and June,” said Ken Robinson, market research
analyst for Motus. “In the coming months, drivers can expect this trend
to continue. We predict that average national fuel prices will peak over
the summer months between $3.00 - $3.15 per gallon.”
The report also found that over the past seven months, fuel accounted
for 25.6 percent of the total cost to own and operate a vehicle, which
is also at the highest percentage in three years. Over the next 12
months, Motus anticipates an increased average national fuel price of
$2.70-$2.80. This will increase the cost to own and operate a vehicle by
up to seven percent over the next year.
“As the company that calculates the annual IRS Safe Harbor rate, we are
intimately aware of the flaws in using a uniform approach for mileage
reimbursement. The model just isn’t flexible enough to reimburse all
employees fairly,” said Craig Powell, CEO of Motus. “Whether using a
cents-per-mile, flat allowance or company car program, treating all
employees the same and not responding to the variances in fuel costs,
individual geography and miles driven creates an unfair market for
drivers. This report highlights how just one variable can exacerbate the
inherent inequalities of current reimbursement programs and why the only
fair approach to reimbursement is the IRS-approved fixed and variable
rate methodology.”
Additional findings in the 2018 Fuel Trends Report include:
-
One of the main drivers of fuel prices is the crude oil market. Crude
oil accounts for 57 percent of the cost of a gallon of gas.
-
Global demand for fuel has been growing each year as nations continue
to develop in a strong global economy. From 2015 to 2018, China’s fuel
consumption has increased by an average of 510,000 barrels per day,
while demand in the U.S. increased by an average of 310,000 barrels
per day.
-
Americans drove a total of 38.3 trillion miles in 2017 – 724 billion
more miles than they did in 2016. This increase in driving has also
contributed to a growing demand for fuel in the U.S.
-
Since late 2017, the U.S. has become the second-largest oil producer
in the world, which has helped stabilize the oil market by filling
gaps in supply and keeping fuel prices affordable. Since the U.S. has
increased its monthly crude oil production, oil prices have averaged
$52.30 – far below a 2016 prediction from Morgan Stanley that oil
prices would exceed $80/barrel.
To access the full report, please visit http://in.motus.com/2018-fuel-trend-report.
About Motus
For companies with mobile workers that drive
more than 5,000 business miles per year, Motus is the premier vehicle
management and reimbursement platform. Through its sophisticated
configuration engine that incorporates real-time data across hundreds of
variables, Motus drives significant reductions in cost, ensures
compliance, and reimburses employees exactly what they deserve. For more
information about the company, please visit www.motus.com
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Copyright Business Wire 2018
Source: Business Wire
(June 13, 2018 - 9:00 AM EDT)
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