Retail diesel prices have exploded, and it’s hitting the back‑office and the cab hard.
What happened
On Friday, AAA posted a daily average national retail diesel price of $5.85 per gallon, shattering the previous record of $5.78 set just a day earlier. This is the highest price ever recorded since AAA began tracking retail diesel in the early 1990s. The jump comes amid a perfect storm: lingering supply constraints from the 2023‑24 refinery outages, a surge in demand from the post‑pandemic freight rebound, and geopolitical tension after the U.S. re‑escalated sanctions on Iran’s oil sector.
Why it matters for dispatchers/drivers
For dispatchers, the cost curve translates directly into freight rates. Shippers are already demanding lower line‑haul rates while fuel surcharges are being capped by many contracts. Drivers see their take‑home shrink as per‑mile pay stays flat and fuel‑advances evaporate. A typical Class 8 tractor burns 6.5 gal/100 mi; at $5.85/gal that’s $0.38 per mile just for diesel – a 30 % increase over the $0.29/mile cost a year ago. For owner‑operators, that extra expense can wipe out profit on a 500‑mile run.
My take
The market is being squeezed by policy and supply‑chain mis‑management, not by any driver fault. It’s time for the industry to stop pretending fuel costs are “just a part of the job” and start demanding real fuel‑surcharge clauses and transparent rate‑setting. Until then, drivers will keep watching their profit margins bleed.
What you should do
- **Lock in fuel‑surcharge agreements** now; push for index‑linked rates tied to the AAA diesel index.
- **Trim idle time** and route‑optimize aggressively – use EK Dispatch Academy’s routing tools to shave off unnecessary miles.
- **Consider fuel‑efficient upgrades** – if you own a truck, evaluate aerodynamic kits or newer engines that can drop consumption by 0.5 gal/100 mi.
*EkJot Singh, Founder, EK Dispatch Academy*