Fuel prices are high in absolute terms substantially impacting the game in terms of supply chain operations. Its adverse consequences are likely to affect logistics industry the most.

Last two decades has witnessed escalating fuel prices. World Bank report forecasts that soaring prices of fuel is one of the main reasons for hindering global economic recovery is 2011. This is causing spillover effects on other industries as well. Logistics industry is currently going through difficult times. Managers face the pressure of delivering goods with speed and flexibility, while cutting operating costs. Sky rocketing fuel prices, reductions in economic activity, supply chain changes, and fluctuations in currency values are affecting the operations of industries.

Petrol prices have risen drastically all over the world, with every country blaming one another. US blamed Egypt for its political unrest causing an increase of 3.1 cent per gallon within a span of seven days. Japan blamed increasing crude oil prices to affect its increase at the pump.