Drive by any gas station and you will see the staggeringly low prices on display. Fuel prices are the plummeting, thanks to the decrease in crude oil costs. The past year has seen its ups and downs in gas prices, but costs generally continue to trend downwards. What does this mean for gas consumers? Take a look below to see who is reaping the benefits, and who is on the verge of bankruptcy.
As a motorist, low fuel prices are nothing but positive. Consumers love saving money and consumers of gasoline are no different. The increased production of crude oil promises to keep prices low and keep bringing people to the pumps. Spending less on gas means you can save more money for other ventures. Whether the saved money goes towards paying bills or into a pot of disposable income, motorists are enjoying the savings that falling fuel prices are providing.
- Freight Shipping Companies
Shipping companies are also reaping the benefits of cheap gasoline. Freight auditors have taken a close look at ground-shipment company expenses and recognize that gas accounts for a large portion of spending. Just as with motorists, the money saved can be put towards other means of controlling transportation costs.
Businesses that rely on freight companies benefit as well. Because fuel cost is going down and companies can afford to ship more, business owners have more competitive pricing to choose from when shopping for the best freight rate. Higher supply of freight shippers means lower demand; this will reduce freight cost overall.
- The Crude Oil Industry
The age old rule of supply and demand is illustrated well when looking at fuel costs. Oil production is at an all time high: there is plenty to go around, so people are in need of it less. Prices are kept low to keep the product moving as more and more crude oil is produced every day. Even oil giants are at risk of bankruptcy because their profits are not great enough to stay afloat. While the consumers reap the benefits of lower oil prices, the manufacturers are taking a hit.
Has your business felt the effects of gas prices dropping? Leave a comment below to share your story.