Diesel Average Drops Below $4.50 per Gallon
When it comes to diesel prices, we have been on a bit of a roller coaster these past few years. However, the Energy Information Administration (EIA) has some news: the nationwide average price for diesel fuel has dropped below $4.50 per gallon.
Details
The EIA surveys fuel prices across ten regions every week. Compared to the same time last year, diesel prices are down 72.6 cents per gallon.
There are two potential forces at work here that are driving prices down: our good old pals supply and demand. Recent news involves Russia entering the global petroleum market, which is sure to lower prices even if the United States continues sanctions against Russia for their invasion of Ukraine (as other countries purchase Russian oil, it leaves more non-Russian oil on the market for the United States to purchase). The other is the transition to alternative fuel vehicles: as the number of these machines on the road increases, the demand for diesel is slowly but surely dropping, though the transition will be anything but short as talks of electric commercial vehicles have been going on for well over a decade at this point, with hydrogen talks not that far behind.
Conclusion
All of these changes in prices pale in comparison to the extremely low rates during the dog days of the COVID-19 pandemic, when people were staying home and not traveling. Based on inflation in the global economy that has happened since then, the chances of returning to the days of ever seeing a gallon of diesel fuel for below $3 each is very slim. The value of the dollar is not what it used to be, so even if the United States reopens all of its drilling and fracking activities, the idea of diesel dropping by 33% of its current price is highly improbable. Our advice for you is to make changes to your fleet’s driving habits such as driving 55 miles per hour and avoiding hard braking in order to get the most distance for every drop of diesel fuel.
Want to see the diesel rates for yourself? Check them out at the EIA’s webpage.
ABOUT TOPMARK FUNDING
TopMark Funding is a top-rated semi-truck financing and trailer financing company located in Roseville, CA. We specialize in commercial trucking and heavy equipment. Our mission is to become your long-term financial partner by helping you grow your trucking business and fleet.
We’re not here for the short-term, we’re on the long-haul with you!
We have financing options for trailers, semi-trucks, commercial trucks, and small businesses. We have great rates, low down payments, and flexible monthly payments regardless of credit history.
Learn more about Trailer Financing.
Fill out the contact form or give us a call at (866) 627-6644. One of our truck financing specialists will contact you as soon as possible to go over your truck lease needs and learn more about you and your business financing goals.
