Lower fuel costs significant for business

Fuel prices have fallen sharply in the past week, and Reuters reported that in the past two weeks gasoline prices experienced the largest drop since 2008. The source revealed that prices were lowered to an average of $3.5454 per gallon on November 2, down from the average $3.7529 per gallon prices seen in mid-October.

Many on the East Coast are struggling to obtain fuel due to the aftermath of Hurricane Sandy, but individuals and corporations in areas not hit by the storm are finding the low prices to be a welcome change from the more expensive fuel seen throughout the summer and fall.

Companies that rely on gasoline may find that the lower direct material cost is helping them rein in some spending on logistics operations. This helps companies that use natural gas to power their trucking fleets to reduce spending on fuel and use that money elsewhere. These cost savings can add up, and businesses may be able to put this saved money back into their companies in time for the new year. Reuters reported that gas prices have fallen more than 29 cents in the past month, an amount that could begin to add up and make a big difference for businesses that rely on fuel-based logistical operations.