Diesel Prices are Declining: Will It Last?
The trucking industry is finally feeling relief from last year’s sky-high diesel prices. According to the U.S. Energy Information Administration (EIA), prices rose slightly to $3.806 per gallon on Monday. Despite the slight increase, that’s still a roughly 34% decline from 2022’s record-breaking peak of $5.81 a gallon. Yesterday’s gain marks the 6th weekly increase this year, that is compared to the 22 weekly decreases. These periodic drops were predominantly dotted through January, although they are beginning to creep up again, an unwelcome change for many truckers. However, despite these weekly changes, the yearly decline is even more dramatic, marking a roughly 31% drop from this time in 2022.
It’s no secret that high fuel prices are challenging for the trucking community, placing an especially high burden on owner-operators, whose margins can be especially tight during periods of high inflation and volatility. Here at Vantage, we know truckers, and we know trucking, so the economic woes of late are often personal for us. Many of our friends and family, both at home and on the road, were struggling. The continual decline in diesel prices is therefore a welcomed gift for many inflation-rattled truckers.
The question then arises for many: can these declines continue? While many in the industry are still battling the brunt of diesel-price inflation, the EIA expects prices to continue dropping. In their 2-year forecast in January, the EIA projected highway diesel prices to decrease to an average of $3.70 in 2024, with regular gasoline coming down from $3.96 to $3.09 a gallon in 2024.
Although it will likely take some time before we reach pre-pandemic prices, the trends in diesel and gas inflation are clear, leaving many truckers optimistic for the road ahead. Just remember next time you’re out on the road to come see us at Vantage Truck Parking. Even when times are tough, we’ll always be here to help with safe places to park near great lodging, food and hospitality.
