Diesel Fuel Prices-Why It Should Not Behave The Way It

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Diesel Fuel Prices-Why It Should Not Behave The Way It Is Doing Now?

In business, one of the great factors to work by is when there is price stability or at least predictability. Today, even a semblance of stability may be the first thing that is thrown out of the window as crisis upon crisis hits. In most business planning, a good part of the yearly budget allocation goes to the powering up of machineries and to vehicles for the distribution of goods and materials. As diesel fuel prices fluctuate heavily, business predictability suffers, margins are lost and for medium to small businesses the existence could sometimes be a struggle to stay afloat.

Diesel fuel like any commodity is market driven; it is subjected to the mechanics of supply and demand.

Factors influencing supply and costs Several factors are attributable to this but the common factor is that as intense pressure is demanded on its supply, the result is a spike in prices. This had been going on for the past several years due to the emergence of developing countries and the continued dependency on oil of the developed ones.

Another factor is the practice of the Oil Producing Countries...

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