If the price of oil is falling why isn't motor oil

[MikeySoft]

Slightly off topic but why did UPS still charge me a fuel surcharge when I recently have something shipped?

 

[TiredTrucker]

I will to if I hauled your stuff on my truck! My fuel surcharge is based on a floor price of $1.25 a gallon for fuel and 6 mpg average on a commercial semi truck. Now take the average nationwide diesel fuel price, as of 12/8 was $3.54. Subtract the $1.25 floor price to get $2.29 a gallon difference. Divide that by 6 mpg, and you get a fuel surcharge per freight mile of $.38 a mile over and above the freight rate.

These are the industry standard calculations being used for 10 years at least. Some companies fudge one way or the other, depending on the client they are hauling for.

 

[Danh]

A barrel of oil is 42 gallons, or 168 quarts. $ 100/barrel crude oil is therefore about $.60/quart. $60/barrel crude is about $.36/quart. So the crude oil component of the 5 quart jug at WalMart goes from $3.00 to $1.80 with this large drop in crude price. So if you're looking for a price drop, something around $1.00 a jug is what you should expect, but this will easily get lost in normal pricing activity, rollbacks and the like.

 

[bigt61]

Originally Posted By: Danh
A barrel of oil is 42 gallons, or 168 quarts. $ 100/barrel crude oil is therefore about $.60/quart. $60/barrel crude is about $.36/quart. So the crude oil component of the 5 quart jug at WalMart goes from $3.00 to $1.80 with this large drop in crude price. So if you're looking for a price drop, something around $1.00 a jug is what you should expect, but this will easily get lost in normal pricing activity, rollbacks and the like.

Very well explained and logical. Oil deals will be coming as usual, it's competitive.