Posts Tagged ‘gas prices’
October Gasoline Prices Lowest Since 2005
Tuesday, November 18th, 2008
The Bureau of Labor Statistics reported today wholesale energy and gasoline prices dropped dramatically in October – ultimately, a stark indication of decreasing demand resulting from the global economic downturn.
While wholesale energy prices fell 12.8 percent, wholesale gasoline prices dropped 24.9 percent after just a 0.5 percent decline last month.
So far in November, falling oil barrel prices and consumption have made current gasoline prices the lowest since summer 2005, according to the U.S. Department of Energy. The average retail price also dropped yesterday to $2.132 a gallon – a 2008 all-time low after prices peaked to $4.165 in July.
Meanwhile, executives and economic experts are still wondering how current prices will affect holiday retail sales, if at all. Kathy Lien of Global Forex Trading called the decline a “silver lining” for this season.
“Although gas station receipts will take a hit, lower prices at the pump will free up money for Americans to spend on basic necessities and holiday purchases,” the director of currency research wrote yesterday.
Eduardo Castro-Wright, head of Wal-Mart’s U.S. operations, has already reported such behavior this month, as made evident by company sales. As gasoline prices fell last month, traffic at its rural and urban stores increased, he said at a Morgan Stanley conference. Wal-Mart’s company sales have also risen 7.4 percent to $94 billion over the last quarter.
The International Council of Shopping Centers reported that nearly one of every four shoppers feel encouraged by lower gasoline prices to spend more – “albeit by only modest amounts.” Michael Niemira, chief economist and director of research, remains skeptical.
“Unfortunately, rising unemployment is holding back spending much more than the help that is coming from lower gasoline expenditures,” he said to the Wall Street Journal .
The U.S. Department of Energy’s information administration projected last week that regular gasoline prices will average at $2.37 a gallon. The average price of an oil barrel can also fall by more than half of its July 2008 price, to about $63.50.
Tags: Bureau of Labor Statistics, christina lee, gas prices, holiday sales, producer price index
Posted in News & Articles | No Comments »
Stronger U.S. Dollar, Dropping Gas Prices Amount to Little Growth for Costco
Thursday, November 6th, 2008
Costco Wholesale’s food sales led a slow growth in the United States this month, though they could not counteract declines in international and total company sales.
In the course of four weeks that ended Sunday, overall U.S. sales rose by 2 percent as international sales fell by 10 percent, summing to a one-percent decline in total company sales.
While other merchandise sales fell overall, food sales continued to rise due to wholesale price inflation. Since September, bakery sales rose by double-digit percentages, while fresh foods sales “continue[d] to be a bright spot in our business,” said Bob Nelson, Costco Wholesale’s head of investor and financial relations.
The company attributes most of the overall slowdown to a strengthened U.S. dollar and with that, weakness in the Canadian dollar, U.K. sterling, and Korean won. October’s drop in gasoline sales also negated the 2.5 percent increase the company saw in September.
In addition, while warehouses saw 2.5 percent more shoppers in October, non-food sales also dropped just as much. Due to price deflation, television sales fell even as the number of units sold continued to increase by 20 percent yearly.
“We believe this is most likely a result of the general status of the economy, and the effects that the current economic condition has on the consumers,” Nelson said.
Tags: Bob Nelson, christina lee, Costco Wholesale, food prices, gas prices
Posted in News & Articles | No Comments »
Fuel-enomics: 10 Tips for Small Businesses as Prices Continue to Rise
Tuesday, April 22nd, 2008
Crude oil prices are up 16% already this year and show no signs of slowing down. So without further ado and straight from the dailybreeze.com here are 10 great tips on how small businesses can deal with the soaring gas prices:
1. Add a separate fuel fee. Call it a fee, call it a surcharge - call it whatever you want. But more and more small businesses are tacking on a special charge to offset the cost of gas. Customers may not be happy, but most understand since they’re dealing with the same situation themselves. They don’t expect small businesses to absorb gas price increases forever.
2. Restructure your pricing or territories. Some businesses are restricting the areas they serve, or charging more to go out of area. Others are raising minimum charges or putting tiered pricing in place to compensate for having to travel greater distances.
3. Use an outside shipper. Small businesses that once delivered small supply orders themselves are finding it cheaper and more efficient to send things via UPS or the postal services. In many cases, items arrive in just a day or two. Shipping services Web sites such as RedRoller.com can help you find the lowest-cost carrier.
4. Leverage the Web . Show customers how buying online and by mail order can save them money by not having to visit your location. Use Web-based collaboration sites to "meet" with clients, freelancers, partners and others rather than meeting in person. A few choices include Zoho , Basecamp and WebEx .
5. Hop into a hybrid. A few years ago, there were only a couple of hybrid models to choose from. Now there are dozens, including SUVs and vehicles suited for small-business needs. Even if you don’t get a hybrid, lighter-weight vehicles and those with smaller engines may be far more fuel efficient than what you have. If you plan to switch, a great place to compare fuel efficiency information is at FuelEconomy.gov .
6. Charge by the mile. If your business or profession allows for it, a per-mile charge might work best. This allows for small adjustments whenever needed. The standard IRS mileage rate for 2008 is 50.5 cents per mile, up from 48.5 cents in 2007.
7. Drive less. Have your suppliers deliver items you need to your business rather than picking them up yourself. Use online map-routing services like MapQuest.com to plan service and delivery routes better, for maximum fuel and time efficiency. Group jobs together to reduce travel.
8. Get rebates on gas purchases. Gas rebate credit cards are increasingly popular with small businesses and can net you cash back of up to 6 percent on what you spend. The higher fuel prices go, the more you get back. Just be sure you pay the bill on time, or interest charges will more than eat your savings. Find gas rebate cards at CreditCardGuide.com or PumpandSave.com , which currently lists the Discover Open Road card as the best deal with 5 percent cash back on all gas and auto maintenance.
9. Find the cheapest gas. While it doesn’t make sense to drive far to save a few pennies, there can sometimes be a surprisingly large price difference just a short distance away. GasBuddy.com and GasPriceWatch.com are two Web sites that specialize in helping find the cheapest gas in your area.
10. Follow fuel-efficient driving tips. You’ve probably heard them - avoid jackrabbit starts; keep tires properly inflated; run air conditioners less, keep vehicles tuned and air filters clean, etc. WikiHow.com has a long list of ideas for "How to Save Money on Gas." Search the title at the site.
For more tips check out Oil prices are going up–ways to cut down on the business energy bill and Little Cost-Cutting Tips that Add Up to Big Savings.
Tags: economy, Finance and Accounting, gas prices, Rebecca Button, small business, tips
Posted in Blog | 1 Comment »