With fuel rates back on the rise many drivers are debating the patterns of the increases and decreases. Some drivers say that the rates on fuel increase for the holiday season. Others believe that election years dictate fuel price increases.
There is no fool-proof system to determine the future prices on fuel. Many people have theories but the current increase has spectators second guessing their positions. Historically, prices for fuel have been impacted by the amount of supply of fuel on the market and the amount of demand for fuel. This would explain the sharp impacts during the holiday season. In the current economic situation rates are going up in spite of the increased supply and below average demand.
Some have gone as far as predicting that the price of gasoline would be as high as four dollars per gallon by June of 2011. They believe the rate of increase that we have seen the second half of 2010, despite the surplus, is no real reason for this trend to stop.
A sharp increase of the fuel prices will leave commercial truck drivers, especially owner operators, with no option but to raise the rate that they charge for carry. Without an increase in the amount charged, the drivers would have to personally carry the burden of the increase in fuel rates. In many cases this is not an option. We can likely expect to see an industry standard rate increase in carrier rates if the actual rates of fuel take the expected increase in the first half of 2011.
Although there is no way to tell what the future of the driver rates will be, it is obvious that the rates will fluctuate with fuel rates. As fuel rates increase it is expected that driver rates will as well and as fuel rates decrease it is also likely that driver rates will decrease.
There is no fool-proof system to determine the future prices on fuel. Many people have theories but the current increase has spectators second guessing their positions. Historically, prices for fuel have been impacted by the amount of supply of fuel on the market and the amount of demand for fuel. This would explain the sharp impacts during the holiday season. In the current economic situation rates are going up in spite of the increased supply and below average demand.
Some have gone as far as predicting that the price of gasoline would be as high as four dollars per gallon by June of 2011. They believe the rate of increase that we have seen the second half of 2010, despite the surplus, is no real reason for this trend to stop.
A sharp increase of the fuel prices will leave commercial truck drivers, especially owner operators, with no option but to raise the rate that they charge for carry. Without an increase in the amount charged, the drivers would have to personally carry the burden of the increase in fuel rates. In many cases this is not an option. We can likely expect to see an industry standard rate increase in carrier rates if the actual rates of fuel take the expected increase in the first half of 2011.
Although there is no way to tell what the future of the driver rates will be, it is obvious that the rates will fluctuate with fuel rates. As fuel rates increase it is expected that driver rates will as well and as fuel rates decrease it is also likely that driver rates will decrease.