Every election cycle, the gas pump becomes a political football. We hear promises, blame games, and a whole lot of noise. But for us working in trucking, it's not about politics; it's about the bottom line. Fuel is our biggest variable cost, and every penny matters when you're fighting for margins in this brutal freight market.
What happened
There's a lot of chatter, some of it misleading, about which administration had higher gas prices. Let's cut through the noise with facts. During Donald Trump's full term in office (January 2017 to January 2021), the average retail price for gasoline in the U.S. hovered around $2.57 per gallon. Now, under President Joe Biden's administration (January 2021 to present), we've seen a significantly higher average, closer to $3.50 to $3.60 per gallon for regular unleaded. While Trump once pledged to get prices below $2 a gallon, and didn't always hit that, his overall average was notably lower than what we've experienced under Biden.
This isn't just about what you pay at the local pump for your pickup; it’s a direct indicator of the diesel prices that drive our industry. Both gasoline and diesel are tied to global oil markets, supply and demand, geopolitical events, and refinery capacity. While no president directly controls global oil prices, their policies and rhetoric can influence investor confidence and market speculation, which trickles down to what we pay at the pump. The reality is, the current administration has presided over a period of consistently higher fuel costs for the entire industry.
Why it matters for dispatchers/drivers
High fuel prices are a gut punch for every single person in this industry. For owner-operators, it's immediate pain. A $1.00 per gallon increase on a 100-gallon fill-up means $100 less in your pocket, per tank. Do that several times a week, and you’re talking thousands of dollars a month eaten directly out of your profit. Many owner-operators are barely breaking even right now, and fuel costs are often the straw that breaks the camel's back.
For dispatchers, fuel prices dictate everything from route planning to load selection. You're constantly calculating fuel surcharges, trying to find lanes that make sense, and negotiating with brokers who are also feeling the pinch. A sudden spike in fuel can turn a profitable load into a money-loser overnight. We teach our students at EK Dispatch Academy how to factor in these volatile costs when negotiating rates, emphasizing the need for robust fuel surcharge agreements. Without proper planning and negotiation, fleets and owner-operators can bleed cash faster than a blown tire.
Fleet owners face the same issues but multiplied across dozens or hundreds of trucks. It impacts their insurance rates, their ability to invest in new equipment, and their driver retention. When drivers see their take-home pay shrink because of fuel costs, they start looking for better opportunities or leaving the industry altogether. This isn't just a nuisance; it's an existential threat to many smaller and mid-sized operations.
My take
Let’s be clear: the working trucker is getting squeezed. Politicians on both sides like to point fingers, but at the end of the day, it's our wallets that are lighter. The data doesn't lie: fuel prices have been significantly higher under the current administration compared to the last. This isn't about partisanship; it's about economic reality on the ground. We need leaders who understand that cheap, reliable fuel isn't a luxury; it's the lifeblood of commerce. When fuel is expensive, everything else gets expensive, and it's the consumer and the working-class trucker who pay the price. We need policies that prioritize domestic energy production and stabilize prices, not just grandstanding. This industry cannot afford to be an afterthought in Washington or Ottawa. We move the economy, and it's time our concerns were front and center. – Ekjot Singh
What you should do
- **Negotiate strong fuel surcharges (FSC):** Don't leave money on the table. Ensure your contracts or rate confirmations include a clear, fair FSC that adjusts with market prices. If you're a dispatcher, make this a non-negotiable part of your rate negotiations.
- **Optimize routes and driving habits:** Every mile counts. Use GPS tools for efficient routing, avoid idling, maintain tire pressure, and practice smooth acceleration/braking. Even small gains add up significantly over time.
- **Monitor fuel prices closely:** Stay informed about market trends. Tools and apps exist to help you find the cheapest fuel along your route. This is a basic but critical step for every dispatcher and driver.
- **Review your operating costs regularly:** Understand your true cost per mile, including fixed and variable expenses. This knowledge is power when negotiating rates and making business decisions. EK Dispatch Academy's curriculum heavily emphasizes this financial literacy for long-term success.
- **Advocate for the industry:** Join organizations like OOIDA or your provincial trucking associations. Your voice matters in pushing for policies that support affordable energy and a stable freight market.