Average Diesel Prices On The Mend Across The US
Things are looking better for truckers – the average price per gallon of diesel declined for the fifth week in a row, according to data from the Energy Information Administration (EIA). The price fell sharply by 21.3 cents to $4.754 for the week of December 12. Average diesel prices are still up $1.10 from a year ago.
The trend in falling average diesel prices since the week of October 24 totals to 58.7 cents. This creates a more hopeful outlook for the industry as we enter 2023.
Better days ahead in 2023?
Recently, the EIA lowered its forecast for average retail diesel price for 2023 from $5.05/gallon to $4.48/gallon, citing high refinery utilization. This is an improvement, sure, but still steeper prices compared to 2021 and earlier.
We suggest some cautious optimism...
…but don’t go too crazy. Back in October, things looked dark for trucking companies, but we’re starting to see some light through the clouds with these new adjustments.
This could lead to increased profitability and a more positive outlook for the industry. Some truckers will be encouraged by the lower prices projections, which suggest that the trend of falling diesel prices may continue. However, as we’ve seen throughout this turbulent time for logistics, it’s better to be cautious. Wait to see if the trend continues before making any drastic changes to your business.
You don’t need to make any changes to take advantage of lower diesel prices because profitability improves, and the lower fuel expenses offset other costs. Be careful if you’re thinking about taking on longer hauls or different routes due to the drop.