Diesel fuel prices are going higher because the Department of Energy told us so last week. A few days after the DOE said diesel fuel prices were going higher, your oil friends and mine, OPEC, raised the 2011 oil demand forecast. Just a month ago, OPEC had said growth would be slow and $70-$80 would be the right price for a barrel of oil (making diesel fuel prices around $2.95 a gallon). OPEC has now changed their tune, saying the economy is growing much faster than they thought. Common sense would say no problem; they'll just produce more oil to keep fuel prices at around $2.95 a gallon.

Well, it turns out the Organization of Petroleum Exporting Countries don't think with common sense as much as they think with, "How much money can we make?" They now say the price of a barrel of oil will be in the $90's (making diesel fuel prices $3.30 a gallon), but that it won't hurt the global economic recovery. My guess is these guys don't own any trucking companies. Will $3.30 diesel fuel prices hurt the economy? I don't know. We've been below $3.00 a gallon and we haven't been very doing well, so I'm not sure how adding 30 cents a gallon will make life any easier for anybody.

Here is where you as a CFO, Director or Fleet Manager must really put the screws to your fleet management team. What life was like when diesel fuel prices hit almost $5.00 a gallon should still be fresh in our heads; and while I don't think we are going anywhere near that high this time around, your fuel management team still needs to take a proactive approach to achieve controls on your fueling program. I'm sure since fuel fell from its lofty $5.00 a gallon perch, some if not all fleets got a little complacent with its fleet management programs. You recall:

• Lowering speeds to 62 mph
• Checking air tire pressure
• Proper preventive maintenance schedule
• Reduce idle time
• Air deflectors
• Driver behavior (fast starts, hard stops), progressive shifting

These were just a few of the fuel savings programs carriers put in place 2½ years ago. As a fuel management company, I strongly recommend that if you put some (or all) of those practices in place, but have let them slip over time, that you make sure you put them back in place. And, if for some reason you never implemented them in the first place, you add it to your to-do list.

What else can you do to help your fuel management with climbing diesel fuel prices so that they don't hurt your fleet company's bottom line? I would talk to my fuel company's about pricing. You should review with your staff and fleet managers on your fuel surcharge program. Being ahead of the curve in thinking about things that can affect your fleet management and bottom line is not a bad thing.

You should take time to review your whole fuel management system, from your current fueling program to your fuel card / fleet card program. Is mobile fueling delivering the overall cost saving you thought it would, or is it costing more than it's saving? How much are you paying for diesel fuel additives? Should you have diesel fuel additives if so when?

Every company reading this article runs a different operation. It is up to you to take action with your fleet management programs. Better to start now, with diesel at $3.11 a gallon, than wait until it's over $3.30. We realize you have limited staff, limited time and limited resources, but an effective FMP can make sure you don't have limited money. Fuel cards, truck stops, fleet cards, mobile fueling and fuel companies all want you as a customer. Talk to them. There's no better time to talk to a fuel management or fleet fueling consultant than now; they can save you time by helping you navigate through all the different fuelling options, and help you by asking you the right questions. How do my bulk diesel fuel prices rank against other fleet companies? Is my fuel inventory management as good as it should be? Put a plan in place. It gets harder, not easier as fleet fueling prices get higher.

Fuel management is a living, breathing function of your business. It will never go away, just as diesel fuel prices will never stay at $2.00 a gallon. If you, your fleet managers and your outsourced fuel management firm can help you prepare for the worst, but hope for the best, you're on the right path to success.