Diesel Prices Hit 6 Year Lows

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Diesel Prices Hit 6 Year Low

Diesel Prices Hit 6 Year Low

Falling Diesel Prices Create Unique Opportunities

Trucking companies continue to praise the falling diesel prices as diesel prices hit 6 year lows. According to the Department of Energy’s weekly report, diesel prices dropped 5.9 cent drop this week. With the decrease, the U.S.’ average per-gallon diesel price fell to its lowest point since October 2009.

Due to falling diesel prices, trucking companies in the U.S. have been recording record profits that have fueled the trucking industry. “Your talking about lower diesel prices in all sectors,Truckers Logic CEO Spencer Jensen states. “This is positive for both trucking companies and owner operators. It allows for growth in other areas of the business. It’s also a glimpse in the near future as improved fuel economy in trucks become more of a reality.

Year to year, average diesel prices are already over a dollar per gallon less. The U.S.’ average price for a gallon of on-highway diesel is now $2.723 nationwide, which is $1.135 lower than the same week last year. Diesel prices this week are the lowest in nearly six years, since prices were at $2.705 during the week ending Oct. 19, 2009.

Diesel Prices Fall Nationwide

The dropping fuel prices were not concentrated to only one area. Fuel prices dropped in all regions across the United States. The most significant fuel decreases were in the Central Atlantic region, where prices dropped 6.7 cents, followed by New England with prices dropping a total of 6.4 cents.

The nation’s most expensive diesel prices continue to be in California at $3.072 per gallon, followed by New England at $2.932 per gallon. The Central Atlantic fell in line 3rd at $2.918 per gallon. The lowest diesel can be found in the Gulf Coast region at $2.611 per gallon, followed by the Midwest region at $2.619 per gallon and the Lower Atlantic region at $2.701 per gallon. The Rocky Mountain region fell in the middle at $2.735 a gallon.

On-Highway_Diesel_Fuel_Prices

The Fuel Surcharge Index had diesel prices dropping 6 cents during the week to $2.651 per gallon nationally. According to FSI’s data, fuel prices are below $3 in every region with New England being the highest at $2.926, and the Midwest region being the lowest at $2.581 per gallon.

Lower diesel prices create an opportunity for trucking companies around the U.S.,Truckers Logic CMO Richard Hale said in a statement. “It allows companies to keep more money in their pockets to invest elsewhere, in other areas of the business. Diesel is the top expense for trucking companies. When you’re cutting back and saving on your top expense, this creates opportunity for all companies. I doubt these prices last long, so if I’m the CEO of a trucking company, I’m using that revenue to expand.