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Fuel Prices Going UP!!!

Discussion in 'General Industry Discussions' started by CuttinUP, Jun 22, 2005.

  1. CuttinUP

    CuttinUP LawnSite Senior Member
    Posts: 337

    Today, I watched the fuel prices jump up $.20 @ gallon. Is any one charging a fuel surcharge to make up from this. How does the customer react from this? I was thinking of charging a 5% fuel surcharge until the prices drop back down, if they do. Does anyone else do this? :angry:
  2. topsites

    topsites LawnSite Fanatic
    Posts: 21,653

    No I have not raised my prices since last year, my fuel is budgeted and I have not exceeded my fuel budget although at times the tanks run critical levels. Still it takes 4-6 weeks of peak production to run the tanks down because that's when it really takes a beating. When things are slow the equipment consumes less fuel and the tanks slowly fill back up, then they drain slowly when things get busy.
    Remember to have a syphon so when things get sketchy in late June, you can drain the aerator fuel since you won't be needing it until September.

    Besides ALL my stuff consumes an average of ONE gallon fuel / yard and that includes the truck and everything. So how can I justify increasing my prices when really, it's only a measly DOLLAR more per gallon today than it was 1-2 years ago, and it's never been cheaper than a dollar below what it is today:
    So 1 dollar per yard more cost... I eat that and my customers are happy.

    Now mind you I do play the fuel-cost whine-and-cry a little here and there and from time to time one my customers decides to pay me 5 bucks more and that makes up for most of it.
  3. Olylawnboy

    Olylawnboy LawnSite Senior Member
    from Oly Wa
    Posts: 312

    Crude hit $60. today I think. They say that will give us $3. a gal. gas in 5-6 months.
  4. jajwrigh

    jajwrigh LawnSite Bronze Member
    Male, from Martinsville, IN
    Posts: 1,405

    I noticed this today as well....its so damn annoying!
  5. jbell113

    jbell113 LawnSite Senior Member
    Posts: 654

    Theres not going to be a 5-6 month delay before it hits $3 a gal ...it will be just before fall. ......I know someone on the inside of the market and he said its going to be soon.
  6. topsites

    topsites LawnSite Fanatic
    Posts: 21,653

    well everyone keeps telling me that I'm just doom-saying but I did say 3.50 before end of summer... I do honestly hope I am mistaken, thou...
  7. dvmcmrhp52

    dvmcmrhp52 LawnSite Platinum Member
    from Pa.
    Posts: 4,205

    Let's see..........
    Oil has been at 50- 55/barrel for how long?
    And going to 60/barrel is going to increase the price of gas by 70-90 cents depending on where you are???

    You guys are falling for the market players nonsense.
  8. klink34

    klink34 LawnSite Member
    Posts: 50

    blah blah blah blah blah! We've been hearing that for the past year that gas was going to go up to 3 dollars a gallon, a couple of months ago it was said that memorial day was going to hit record high, but if anyone paid any attention to the prices, it was actually the lowest it's been for awhile, hitting 1.84 in some places. The point is you can't go off of what the people predict, they over exaggerate. and what is .20? an extra 5.5, I know it looks shocking, but what can you do?
  9. Woody82986

    Woody82986 LawnSite Silver Member
    from DFW, TX
    Posts: 2,128

    I'll believe $3.00 when I see it. Until then I am saying gas will not go up by 50% in the next 5-6 months. I am not sure about my history on this but has there ever been a 50% jump in gas prices over a 6 month period in history.
  10. GLC51

    GLC51 LawnSite Member
    Posts: 128

    I wish gas were only $3.00. Up here in my city it's been bouncing up and down 85 to 90 cents per litre. There are 3.79 litres to 1 US gallon so it's been $3.22 to $3.41 for some time. They are predicting $1 per litre in a few months (or less).It has peaked in some cities at 99.9 cents. The gas stations are going to have to spend money on new price signs with 4 digits. Meanwhile we are getting screwed as usual.

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