Pandemic Vs. Petroleum: The Outlook for Gas Prices

The COVID-19 pandemic had an impact on gas prices all over the world. The reasons were very easy to figure out – since everyone was staying at home for health reasons and businesses were moving their operations online instead of using offices, no one was traveling. This caused gas prices to plummet. However, as we start to lift restrictions on businesses and citizens alike in various states, expect gas prices to rise, as petroleum companies and government agencies alike try to make up for lost time.

Gas Prices Beyond the Pump

The drop in gas prices had a lot to do with the decrease in demand, but the total impact went beyond the pump. Because no one was buying gas, government agencies could not collect money from gas taxes. That may not mean much to the average motorist, but taxes at the pump are what primarily fund road and highway repair. This means that a lot of the summertime infrastructure projects have been postponed. Yet because the trucking industry has been on the front lines throughout the pandemic, they have taken most of the burden in paying gas taxes for the past few months. As restrictions are lifted, expect petroleum companies to raise prices at the pump and government agencies are likely to fall in line to get their share of the revenue so they can fund infrastructure projects.

Guaranteeing the Lowest Gas Prices for Your Fleet

As commerce channels open up across the United States, gas prices will rise and the trucking industry will need to use more fuel to keep supply chains running efficiently. Planning trips around the lowest prices will not be a guaranteed solution, because prices will be rising nationwide. Trucking companies of all sizes will need a way to lower fuel expenses to preserve working capital. At Single Point Capital, we provide fuel discount cards and fuel advance programs for our factoring clients. If you want the best fuel prices at the pump and wholesale, plus tools to help track the expenses of your drivers, contact our offices today. Single Point Capital is your one-stop shop for factoring, fuel discounts, and more.