.10 cent gas

Discussion in 'UPS Discussions' started by toxic88, Nov 30, 2014.

  1. toxic88

    toxic88 New Member

    I once saw a notice outside my center office which read " a .10 cent increase in gas cost UPS $25 million dollars a year." That was about 10 years ago. Around my area, gas has gone down about a dollar as of a year ago. I guess it's about time UPS makes back that money. I am one of those believers that it is very important to have a financially sound company. Hopefully gas continues to drop. Just food for thought.
  2. UpstateNYUPSer

    UpstateNYUPSer Very proud grandfather.

    .10 cent is not the same as $.10 or 10 cents. Just sayin'.

    FedEx and UPS are among transportation companies that have benefited greatly from the sharp decline in fuel prices. Keep in mind that shippers continue to pay the fuel surcharge even when gas prices are down. UPS has already announced their annual rate increase, which includes the fuel surcharge, so if prices continue to fall 2015 should be even more profitable than 2014.

    BTW, I paid $2.63/gal in Iowa this past week.
  3. joeboodog

    joeboodog good people drink good beer

    I think we are all enjoying the lower gas prices but I was wondering if UPS buys fuel in advance as a hedge for future increases.
  4. oldngray

    oldngray nowhere special

    When gas prices go up UPS just tacks on a fuel surcharge so it doesn't really cost them extra.
  5. UpstateNYUPSer

    UpstateNYUPSer Very proud grandfather.

    Fuel futures are purchased on a quarterly basis. I don't know if there are contingencies in those futures for price decreases. We buy our fuel off-site in our center.

    ...and when prices go down they rake in the dough...
  6. airintrace

    airintrace Active Member

    When fuel prices go down it affects us in a lot of ways. The fuel surcharge is a flex rate; meaning when fuel goes down it goes down and when it goes up same thing.

    Also when fuel goes down the stocks in the Dow transportation index skyrocket like we did on Black Friday.

    Another thing is that when people pay for NDA and its groundable; it does not go on a plane but goes by feeder because the ground transit time is the same they are absolutely killing it off of that.
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  7. 3 done 3 to go

    3 done 3 to go In control of my own destiny

  8. PT Car Washer

    PT Car Washer Well-Known Member

    That $2.63 is for 10% ethanol blend. Had heard years ago UPS only uses regular unleaded fuel.
  9. UpstateNYUPSer

    UpstateNYUPSer Very proud grandfather.

  10. Gumby

    Gumby *

  11. HardknocksUPSer

    HardknocksUPSer Well-Known Member

    Gasoline willl soon be a thing of the past. Big browns going propane in some locations around the country.
  12. UPS4Life

    UPS4Life Active Member

    Fuel goes down tolls go up. The George Washington bridge starting December 7 is raising their rates to 14$/car or 19&/axle for truck. Now this is the cash prices so ez pass is a little cheaper but still you get the point.

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  13. joeboodog

    joeboodog good people drink good beer

    Pardon me for my fly over ignorance, but is it really $14.00 to cross that bridge?
  14. Gumby

    Gumby *

  15. silenze

    silenze Lunch is the best part of the day

    Cash price northbound toll at CACH is going from 1.10 to 1.60 for cars.
  16. UpstateNYUPSer

    UpstateNYUPSer Very proud grandfather.

    Yuppers. It is more of a tax to get in to Manhattan than a true toll. Oddly enough it is free to go back in to New Jersey.
  17. The Blackadder

    The Blackadder Are you not amused?

    This is good news, it will help to offset all the extra gas UPS drivers are burning trying to follow Orion.
  18. joeboodog

    joeboodog good people drink good beer

    I always thought that fuel taxes were a set amount rather than a percentage so price per gallon doesn't matter.
  19. UpstateNYUPSer

    UpstateNYUPSer Very proud grandfather.

    They are; however, and I didn't even realize this, the fuel surcharge is not a fixed amount but is rather based on an index and is adjusted on a monthly basis.
  20. Gumby

    Gumby *

    Cars are using less fuel. Therefore,more miles of wear and tear on the roads. Less revenue collected.