Diesel prices see 25 consecutive months of y/y decreases
The national U.S. average diesel price per gallon of $3.59 in March is down from $3.68 in February and still lower than the $4.02 average from March 2024. Continuing the trend, this marks the 25th consecutive month of y/y decreases in fuel.
The decrease in fuel rates is welcome news for carriers. While fuel is largely a pass-through, carriers must still pay for fuel for deadhead mileage, which tends to increase during soft markets as carriers are more willing to reposition a truck further to secure a load.
In addition, decreased fuel prices also help with improved cash flow as less money is needed to pay for fuel up front. This is a double-edged sword though. While lower fuel prices alleviate some pressure on carriers, it also intensifies competition because all carriers benefit from this relief. In an over-supplied freight market, this helps keep carriers in the market longer, perpetuating the over-supply situation longer.
