How high will the price of oil go? It is no big deal to pay more for fuel or is it? Why should increasing fuel costs should concern me?

We have all heard about the rising price of oil on the evening news or may have read articles like these:

 

So you think, well I will just have to pay more to fill up.  I will juggle my budget and cut back on eating out, etc. to pay for my higher fuel costs.  Unfortunately, what you don’t know may be putting you at risk.

Things you may want to know…

 

What you can do…

As the price of fuel keeps rising or stays at high levels beware of commercial vehicles driving near you.  I watched this type of problem first hand today myself.  A double dump truck in the lane beside me had trouble stopping at a red light because his tires were worn.  He was driving way under the speed limit at the time.

Remember..

Truckers suffer from fatigue at the best of times, which can affect their driving.  If they are skimping on maintenance this further jeopardizes public safety.

 

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16 Comments (+add yours?)

  1. coconews
    May 08, 2008 @ 20:03:16

    Goldman Sachs is predicting $200 oil.

    Hopefully, we will not see oil that high for quite awhile, because I would hate to think how bad skimping on maintenance would get in the trucking industry.

    Plus, at that point, I think even the general public may skimp on vehicle maintenance too.

    What do you think of high oil prices? Truckers skimping on maintenance, etc.?

  2. Mickey
    May 08, 2008 @ 22:04:27

    We should be like Europe. Trucks should not be allowed in the city.

  3. Annon
    May 09, 2008 @ 01:14:45

    “Trucks should not be allowed in the city.”

    Though I am not an expert in city planning, this sound a bit of over simplifying the real problem doesn’t? I think it’s fair to say that there are things that can be most cost effectively done by trucks. So if such needs are required in city area, I’d say let trucks get those needs fulfilled.

    I have been to Europe and can’t say I am all that impressed with Frankfurt, Amsterdam, or even London.

  4. Annon
    May 09, 2008 @ 01:20:19

    I never really thought of it but after reading Coco’s news links, yes, it makes a lot of sense. But I think the real problem isn’t the rising oil price itself right? The problem is that truck drivers do not have the pricing power over their clients. I mean grocery stores have pricing power over items that people must have to support life. If truck drivers are not able to pass their costs of operation to their clients, then for sure they would be squeezed. There seems to be a missing link though. If everyone, you and me and the truck drivers are getting squeezed because of the high oil price, then who isn’t? OPEC countries and petroleum companies? And if this is the case, isn’t there something wrong with this picture?

  5. smithe
    May 09, 2008 @ 06:54:49

    Oil hit another new high $126.21 this morning.

    If the price keeps rising, will we have a shortage of food, goods, etc., because of the high cost of fuel? If truckers are already being squeezed to up keep the maintenance on their rigs, higher fuel costs will make things worse.

    We will either see truckers abandoning their profession because they can’t make a living or very high fuel surcharges slapped onto everything.

  6. View
    May 09, 2008 @ 08:20:56

    I think it may change the attitude that it’s our god given right to guzzle gas driving a full size SUV. It seems when you leave the city center in North America, EVERYONE is driving a full size truck or SUV. Maybe something more fuel efficient wouldn’t be so bad and it will save money as well?

    Less maintenance in the trucking industry is very scary!!! If the drivers of these trucks are not experienced it may cause extra concern.

  7. smithe
    May 09, 2008 @ 08:50:51

    Less maintenance is very scary indeed, the government will have to increase the number of roadside safety checks. Unlikely though, considering how slow the government acts on everything.

  8. VanTOVan
    May 09, 2008 @ 15:40:58

    It’s funny how these price shocks can pretty much go either way when it comes to the effect on the public interest.

    Remember those old commercials from the States with that soldier telling everyone to drive 55? (was that some nod to Patton? I was pretty young, so it’s hazy..) Can’t say I have a problem with people driving slower and driving smaller vehicles.

    On the other hand, when people are guided by the invisible hand, we can really get slapped around–hence the reduced maintenance of trucks and the diversion of food production to ethanol.

    The bizarre thing is to listen to commentators go on about the possible impending crises brought on by expensive oil with unabashed glee (ex. James Kunstler http://www.kunstler.com/)…

  9. coconews
    May 09, 2008 @ 17:21:07

    I think you will always find people cheering on a crisis, market crash, etc. with glee until it affects them financially.

  10. evergreen
    May 09, 2008 @ 17:58:36

    Oil is the blood that courses through the veins of the economy. At $1.25 per litre I think it’s still cheap relative to milk, mineral water (esp Volvic), beer, Starbucks coffee, pop, etc (I only buy milk).

    I do realise that we are being held ransom by Opec (made one trillion US dollars in Q1 2008) and by speculators. But the fundamentals for oil have probably changed in relation to supply and demand.

    Some ‘experts’ believe that oil will sink back to US$60 p/b. I find that difficult to imagine. The Iranian president Ahmadinejad has already warned us that oil is still very cheap. This means that we’d better brace ourselves for more price increases from the oil cartels. I might then have to forgo drinking milk.

  11. Paulb
    May 09, 2008 @ 18:03:49

    I remember when I was 20 buying gas at 30.9 and it was 33.9 for months. When it went to 40 and then 50 I was furious!! Well times have changed. You do have to take your gas expense more seriously when calulating car payments and insurance.

  12. ADW
    May 10, 2008 @ 00:15:14

    Can someone explain to me why the truckers can’t pass on the price of fuel to their customers?

    I ship quite a bit of stuff, and I really don’t understand why the truckers feel backed into a corner witht eh high prices. Stick to your margin and adjust prices accordingly.

    Why does this not work?

  13. coconews
    May 10, 2008 @ 09:23:50

    I believe the problem is that independent truckers negotiate contracts for hauling goods in advance. At the time they signed their contract the price of diesel may have been 80 cents lower per gallon than it is today.

    I doubt a store is willing to renegotiate a shipping contract once it is signed just because fuel prices have risen.

  14. Strataman
    May 10, 2008 @ 14:52:05

    “At the time they signed their contract the price of diesel may have been 80 cents lower per gallon than it is today” Okay so that might be the case for existing contracts, but what’s the problem putting fuel increases in new contracts? Seems to me to be a non-issue. By the way most contracts in trucking are 6 months so that is all the lag we shall see.

  15. Annon
    May 10, 2008 @ 15:22:14

    My guess is that the demand for shipping by trucks has lowered to the point where some trucks either need to keep lower rate to keep business or lose business all together.

  16. sutluc
    May 11, 2008 @ 08:53:35

    Trucking is very cut-throat. There is always another operator who will do the job cheaper, so it’s always a race to the bottom.

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