Diesel prices have jumped by nearly $1 in the last few months, and that’s just the beginning. In the past year, diesel fuel has gone from 3.27 a gallon to 5.70 a gallon. As a result, truckers who have to fill up are paying the price: it costs at least $200 more now than last year.
You may be wondering: Why is diesel more expensive? And you’re not the only one.
The entire trucking industry can feel the pressure of gas prices rising, and those prices are only going to go up. To keep your business afloat, you need to understand what’s going on with the price of diesel. Here’s a breakdown:
The average state tax on diesel fuel is about $0.06 per gallon, higher than gasoline. That gap has been developing for years, but it’s especially noticeable now that we’re in a post-pandemic economy.
Why Is Diesel More Expensive Than Gasoline?
Higher taxes aren’t the only factor behind rising diesel prices; the demand has increased too.
This is large because truckers are driving more miles than ever. In fact, the average trucker drives 650 miles a day, and that number keeps rising.
Oil Production Costs
The cost of crude oil, which has been increasing lately, has also affected the price of diesel. In addition, the Russia-Ukraine crisis decreased the supply of oil available on the global market, which will significantly affect oil prices. As a result, diesel fuel price projections have been rising since the start and are expected to increase throughout the year.
It takes a lot of time and money to turn crude oil into finished products like gasoline and diesel. With the current demand for oil, refineries are working around the clock to keep up. This increased demand has put a strain on refinery operations, and as a result, refining costs have gone up.
With all of these factors at play, it’s no wonder diesel prices are expected to continue rising in the coming months. So if you’re a trucker or fleet owner, now is the time to shop for commercial fuel services that can help you save money and protect your bottom line.
Don’t Let The Fuel Prices Get You Down
Focusing on questions like, “Why is diesel more expensive than gas?” and “How can I save money on fuel?” will help you take control of your trucking operation’s budget.
The first step is to understand that diesel fuel prices are based on the global climate and your local market demand. While you can’t do anything to change either of these factors, you can get more value out of every gallon of diesel. By partnering with a commercial fuel provider and taking advantage of fleet fuel cards, fleet fueling services, and other cost-saving resources, you’ll be able to keep your vehicles on the road for less.
For additional tips on saving money at the pump, check out our lifestyle blogs.