Whenever the management of a petroleum company is discussed in passing, the discussion usually dwells on how the logistics of the company is wrought. However, the management of an oil company does not only pertain to logistical operations; management also entails various operations that require meticulous attentions.
The logistics of an oil company definitely plays a critical role in the success of the company. The management of the company should, therefore, employ various management software to address the different areas of management that need to be meticulously overseen. Software management can help in synchronizing and coordinating the different needed operations to make the company perfectly operational. The movement, for example, of oil products from the reservoir to the vendors should be highly coordinated and synchronized to make the operations of the company highly efficient and effective.
In the aspect of finances, the company should utilize various financial software that allows the decision-makers and managers to figure out where the financial resources of the company are coming and going. With the use of financial management software, every cent and dollar will be meticulous tabulated and accounted for.
The Need for a Fuel Pricing Strategy
The most complicated aspect of an oil company involves the aspect of setting fuel pricing strategies. The price of oil is obviously continuously fluctuating from time to time. The fluctuations in oil prices are usually indicative of and based on the fluctuations in the demand or need for crude oil. Moreover, there were times in the past when the price of crude oil had skyrocketed due to the increase in demands for inventories of crude oil as a precautionary measure against a possible shortfall in the supply of oil. There were also times when oil price hike happened because of some brewing tensions in countries that were major suppliers of crude oil.
Europe and America have their own benchmarks for the price of crude oil. In Europe, for example, it is Brent that is used as a benchmark. The pricing however of gasoline and diesel can be said to be based on several factors such as:
- Crude oil prices
- local demand
- Processing cost and distributional cost
- Local taxation
- Volatility of currency
- Availability of local oil supply
- Other factors such as wars
- Extreme weather
- Natural disasters
- Taxes on Fuel
Since oil prices, as said earlier, is fluctuating, oil companies have created a systematic pricing strategy which they base on the established benchmark. However, the calculations of the retail prices of oil that an oil company sell can be further facilitated using fuel pricing software. Fuel Price management system is a system of using apps that allow oil companies to quickly figure out the prices of gasoline and diesel every day. This software is surely an easy-to-use software with a highly dynamic interface. This software will surely enable companies to streamline their fuel pricing allowing them to figure out the correct price of oil anytime. The software likewise helps companies to lessen and eradicate the errors due to the manual calculations of oil prices. With this highly intuitive software, oil companies can say “goodbye” to the manual process of calculating the retail prices of oil.