How Carriers Can Mitigate Fuel Expenses

Fuel represents the largest vehicle-based operating expense for trucking companies. On average, carriers spend around $50,000 to $70,000 per year on fuel and it makes up about 24% of total costs. With the diesel fuel trajectory showing a possible upward slope on prices in 2021, carriers must find ways to mitigate their fuel expenses.

Diesel Prices

For the past nine consecutive weeks, diesel prices have increased, posting the longest run in almost three years. Although some signals in the market suggest that this trend will slow down in the near future, fuel prices in the long run will take off.

Many variables impact fuel prices which cause volatile predictions. But one of the main variables that suggests an increase in fuel prices this year is vaccine distribution. As the vaccine becomes widely distributed, states loosen travel restrictions, and the global economy continues to recover, we will see some modest impact on prices at the pump due to higher oil demand. (Click Here To Learn More)