by John Keller | Feb 7, 2013 | Fuel Price Management, Fuel Pricing Strategy, Fuel Pricing Technology, Industry News
According to a new University of Michigan study, new vehicles sold in the US have a record miles per gallon rating, reaching 24.5 mpg. That is a full 1 mpg increase from January 2012, 2 mpg increase from January 2011, and 4 mpg increase from January 2008. A month by month detailed table can be found here.
Last month I wrote a summary of the US Energy Information Agency January report, where the USEIA explained that the primary cause for ongoing decreased fuels consumption in the US is increased auto fuel efficiency. This Michigan study correlates well to that study, and in combination, the two studies help us predict the future of US retail fuel sales volumes – we can expect lower volumes this year than last.
From a fuel pricing strategy standpoint, we can anticipate an increasingly competitive fuels market, as the overall fuels volume pie continues to shrink. The practice of fuel price management is not for the weary, and requires careful attention to monitor margins and volumes store by store, market by market, with a well executed fuel pricing strategies plan.
by John Keller | Jan 23, 2013 | Fuel Price Management, Fuel Pricing Strategy, Fuel Pricing Technology, Industry News
IGS is an independent retail supplier of natural gas, and a company with a vision of an energy independent United States. They now plan to build a network of CNG (compressed natural gas) fueling stations along I79 from West Virginia to Pennsylvania. IGS plans to finish this first corridor by the end of 2013, and continue to expand with more stations into the future.
IGS touts the main advantages of CNG fueling stations as 1) less expensive fuel than gasoline or diesel, and 2) refueling time is about the same as traditional fuels.
According to the US Department of Energy, there are now 558 CNG fueling stations in the US, excluding private stations. That is the fourth most common alternative fueling station behind electric, propane, and ethanol. But CNG expansion continues to be in the news, with municipalities announcing conversions of their fleets to CNG, announcements of more CNG fueling station networks being built, and auto manufacturers announcing the availability of stock CNG versions of their vehicles. It could be that 2013 becomes the year of CNG, laying the groundwork for a tipping point where we see a rapid increase of CNG vehicles on the road.
From a fuel price management standpoint, CNG presents another indicator of the overall traditional fuels volume pie shrinking, and the potential opportunity of a whole new fuels market for the taking. Which c-store chains will be the pioneers in this new opportunity, and which will follow?
by John Keller | Dec 10, 2012 | Fuel Pricing Technology, PriceAdvantage
There’s a new mobile gas prices app available for the iPhone and Android, and this time the prices are not reported by drivers but by the trusted source of OPIS. It’s the MapQuest Gas Prices app available here, and it automatically detects the location of the phone to display nearby retail fuel locations. It also allows the user to enter an address to find gas prices near there, and it can store favorites for quick reference to someone’s most commonly frequented fueling stations.
With the PriceAdvantage OPIS integration, now fuel managers can be sure their latest fuel price information is displayed on the app, and their retail fuel prices are 100% accurate. After price changes are complete, PriceAdvantage sends the newest prices to OPIS, who then posts the price on MapQuest, AAA, Garmin and other sites.
I use the new MapQuest Gas Prices app on my Droid and I find the user interface to be simple to use and extremely accurate.
by John Keller | Sep 25, 2012 | Fuel Pricing Technology, Industry News
There is general consensus from NACS and fuel management analysts that for the next 20 years, liquid petroleum fuels will continue to be the predominant energy source for how consumers power their vehicles. And though electric vehicles have yet to put a big dent in the number of vehicles sold, the electric vehicle company Tesla today made an announcement that could have a significant impact on how quickly electric vehicles are embraced in California and the rest of the US.
Today Tesla CEO Elon Musk announced that Tesla is building Supercharging stations that charge twice as fast as any chargers now in use. Mr. Musk announced that these Supercharging stations will be installed at highway rest stops. Six are already installed in California, allowing drivers to make it from Los Angeles to San Francisco and from Los Angeles to Sacramento. Tesla plans to have over 100 of these stations throughout the US over the next three years.
The new Supercharging stations are intended to allow drivers to fill up their battery while they take a bathroom break and have a fast meal, similar to the standard practice of taking a road trip pit stop today.
Will demand for these Supercharging stations be overwhelming for travelers and make it inconvenient because people need to wait in line to use one? Perhaps, but certainly that is a problem Tesla would love to have, since it means there must be enough electric cars on the road to cause such demand.
One thing we can count on: the trend of decreasing gasoline consumption is going to continue, as gasoline and diesel fuel vehicles become increasingly fuel efficient, and the electric vehicle market share continues to grow. From a fuel price management perspective, that means a more competitive marketplace, where c-stores are competing for an ever-shrinking part of the liquid fuel pie, and only the most savvy c-store chains running robust fuel pricing software will survive.
by John Keller | Jun 28, 2012 | Fuel Pricing Technology
Google entered the mobile tablet market today with the launch of their Nexus 7. With a $199 price point, this product is a direct competitor to the Kindle Fire, and provides another less expensive alternative to the iPad.
The Google browser built in to the Nexus 7 has already proven to be an effective way for fuel price managers to gain access to fuel pricing software systems like PriceAdvantage while away from their desk. PriceAdvantage customers already use their tablet and smart phone devices while traveling, at meetings outside the office, or at home, to review proposed prices based on established competitor business rules, and to remotely send fuel price changes to the street. PriceAdvantage customers can then check their mobile device for confirmation of when the price change was complete.
With the Google Nexus 7, fuel price managers have another mobile tablet option to manage fuel prices across their c-stores.
by John Keller | Jun 26, 2012 | Fuel Pricing Technology, Industry News
Congratulations to Murphy for completing their three year project of replacing older electronic gas price signs with new signs from Skyline Products at over 500 locations. This is a feather in the cap for both Murphy and Skyline Products as we continue to extend our 12 year partnership.
Electronic gas price signs are a key component to the overall fuel price management closed loop process. With PriceAdvantage fuel pricing software, the Skyline Products electronic gas price sign provides the feedback confirming that the price change is complete at the sign, and the right price is at the street. Pairing PriceAdvantage fuel pricing software with Skyline Products electronic gas price signs also allows headquarters to have access to critical sign health and status indicators, such as internal sign temperatures, and status of power supplies.
