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Dive Brief:
- On-highway diesel prices reached a two-year low of under $3.66 per gallon, per U.S. Energy Information Administration data released Monday.
- The recent record continued a downward push that’s unfolded during the last three weeks. The series eclipsed an earlier low set on July 3, 2023, for the period.
- The current rates are well below a January forecast from the agency, with a Midwest region seeing the largest drop of 8 cents week over week.
Dive Insight:
The price of diesel, decreasing 6.8 cents week over week, is one factor affecting certain fleets’ ability to operate, with inflation continuing to threaten consumer norms and persistently soft demand causing pain for fleets.
Spot rates dropped by about 7 cents per mile from a year ago as of Saturday, making operating margins drop to below breakeven, DAT iQ Principal Analyst Dean Croke told Trucking Dive in an email.
“For a long-haul spot market carrier, they are losing the equivalent of $0.04/mile ($4,000/year) with fuel at $3.73/gal and dry van rates at $2.01/mile,” he wrote. “This time last year they were breaking even.”
