With diesel prices well above where they were a year ago, trucking companies nationwide are feeling the pinch as profits shrink on the same loads they ran previously. As of October 5, the U.S. Energy Information Administration (EIA) reported diesel averaging $6.20 per gallon nationwide.
Prices have started to come down, but fuel costs are still putting pressure on trucking companies. And while you may not control the price at the pump, you can take steps to reduce its impact on your business.
Finding Savings in Your Daily Operations
A higher fuel bill leaves less money for everything else your business needs, from routine maintenance to unexpected repairs.
Consider this example: let’s say a truck averages 10,000 miles per month and 6.5 miles per gallon. At the current $6.20 diesel average, that’s about $9,540 per month in fuel costs, almost $4,000 more than at the national average for the same week last year, before discounts or fuel surcharges.
Here are six ways to help offset some of those higher costs.
1. Plan Routes and Reduce Empty Miles
Before accepting a load, take a few minutes to review the full trip, including the drive to the pickup location, the delivery route, and your options for picking up another load after delivery. This can help reduce miles driven without freight.
Use routing designed for commercial trucks to account for road restrictions, traffic, appointment times, and hours-of-service requirements. When possible, coordinate pickup and delivery timing to reduce waiting and avoid heavy traffic.
2. Manage Speed and Drive Smoothly
Maintain a steady, safe, legal speed that is appropriate for both the road and the truck. Avoiding unnecessarily high highway speeds, accelerating smoothly, and avoiding repeated hard acceleration and braking can help maximize your truck’s fuel efficiency.
3. Reduce Unnecessary Idling
The Environmental Protection Agency (EPA) estimates that a typical combination truck uses about 0.8 gallons per hour while idling. At the current national price, that’s about $4.96 per hour. Limit unnecessary idling by identifying avoidable engine-on time at stops and loading docks.
4. Keep Up With Truck Maintenance and Tire Inflation
Underinflated tires increase rolling resistance and heat, wasting fuel and shortening tire life. Keep tires properly inflated by checking pressure regularly with an appropriate gauge or monitoring system, and follow manufacturer guidance for the actual load.
It’s also important to maintain trucks on the recommended schedule. If you notice a persistent decline in a truck’s MPG, investigate it quickly to see if you can identify a mechanical cause.
5. Plan Fuel Purchases and Price Shop
With fuel being such a significant line item for motor carriers, it pays to compare eligible discounted prices at stops along the planned route. When comparing fuel costs, consider that a larger advertised discount doesn’t automatically mean a lower final price.
You’ll also want to check card fees, payment requirements, participating locations, and whether the price comparison uses equivalent cash or credit terms.
6. Review Load Pricing and Fuel Recovery
Review your operating costs regularly to make sure your rates account for current fuel prices, including fuel used during empty miles.
For contract loads, check your fuel-surcharge agreement. For spot-market loads without a separate surcharge, include those costs when negotiating the total rate. If you’re leased to a carrier, review how fuel surcharges are passed through to you.
New Relief for Red-Dyed Diesel
On October 5, President Trump signed an executive order that could give carriers some temporary relief from high fuel bills. The order concerns red-dyed diesel, which is generally sold without federal highway fuel taxes for off-road uses, such as farm and construction equipment.
For eligible carriers, the order calls for postponing federal fuel taxes incurred from October 5 through December 31, 2026, without interest or penalties. It also calls for penalty relief for highway use of dyed diesel during that period. That could leave more cash available for operating expenses now, although the postponed taxes may still need to be paid later. Treasury’s guidance will establish who qualifies and the payment deadlines.
State taxes and restrictions also matter. A lower price at the pump doesn’t necessarily mean a lower total tax bill, and taxes may still be owed through the International Fuel Tax Agreement (IFTA). Before using dyed diesel, check current federal guidance and the rules in each state where you operate, and continue keeping your mileage and fuel-purchase records.
Help With Fuel Taxes and Cash Flow
Higher fuel bills can make it harder to cover expenses while waiting for customers to pay. US Compliance Services’ factoring program provides advances against eligible unpaid freight invoices, usually within the same day after verification. Once your customer pays, you receive the remaining balance, less the factoring fee.
For help with IFTA preparation and filing or to discuss factoring options for your business, contact US Compliance Services. We’re here to help you manage your compliance needs and keep your business moving.
