Ameer Randolph
The affordability of diesel fuel is a growing concern for many people, especially with the current high prices at the pump. Diesel fuel prices have been higher than regular gasoline prices for almost two decades, breaking the historical pattern. There are several factors contributing to this trend, including high demand, the transition to lower-sulfur diesel fuels, and taxes. The demand for diesel fuel is influenced by economic trends and seasonal variations, particularly during fall and winter when the need for heating oil is higher. Additionally, diesel vehicles are often heavier and carry heavier payloads, leading to higher taxes as governments attribute roadway damage to these vehicles. The recent challenges with the availability of crude oil have further exacerbated the situation, pushing diesel fuel prices even higher. These factors collectively impact the affordability of diesel fuel for consumers.
| Characteristics | Values |
|---|---|
| Affordability of diesel fuel | Fluctuating prices, generally higher than regular-grade gasoline since 2004 |
| Factors influencing cost | Demand, transition to less polluting fuels, federal excise tax |
| Cost-saving methods | Fuel cards, loyalty programs, discounts, cash back, waived transaction fees |
| Fuel card considerations | Compatibility with vehicle, gas stations, fees, spending control, maintenance tracking |
| Fuel price variation | Exists across regions, states, and locally |
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What You'll Learn
Fuel cards for RVs and trucks
The cost of diesel fuel can be a burden, especially for those with RVs and trucks. However, there are ways to save money on diesel fuel, and one of the most effective methods is to use fuel cards.
Another option is the OTR Fuel Card, which offers savings of up to $2.25 per gallon and an average of $0.50 per gallon at over 2,500 in-network locations. The OTR Fuel Card has no transaction fees and provides access to exclusive discounts. The company also offers a mobile app with a Fuel Finder tool, making it easy to find the biggest discounts along your route.
Mudflap is another fuel card option that does not charge any fees or require fuel cards, credit checks, or contracts. It provides instant fuel discounts at hundreds of independent fuel stops, and the fuel code received is valid for 24 hours.
These fuel cards can help RV and truck owners save a significant amount of money on diesel fuel, making their travels more affordable and enjoyable. By taking advantage of these cost-saving measures, individuals can make the most of their vehicles without breaking the bank.
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Cost savings at truck stops
Fuel cards, such as the TSD Fuel Card, Apex Fuel Card, and TCS Fuel Card, can offer significant savings on diesel fuel at truck stops. These cards allow users to purchase fuel at fleet prices and receive special discounts at in-network fuel stops.
Additionally, tools like the Apex Fuel Finder and Truckstop Load Board can help identify truck stop locations with the best fuel prices along a route. These platforms use technology to suggest where and how much to refuel based on average miles-per-gallon and current diesel prices, helping to save both miles and money.
To further optimise fuel efficiency, it is important to track fuel consumption and mileage. By dividing the number of miles between stops by fuel burned, drivers can identify any changes and address issues promptly. Maintaining proper air pressure in tires, reducing speed, and using torque instead of horsepower can also improve fuel economy.
Improving truck aerodynamics can also lead to significant fuel savings. Devices that reduce the gap between the truck and trailer, minimise airflow under the truck, and allow airflow through slotted mud flaps can reduce drag and fuel consumption. Upgrades like roof fairings and low-rolling resistance tires can further enhance fuel efficiency.
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Fuel card discounts
Fuel cards are a great way to save money on diesel fuel. Diesel fuel card users have reported savings of hundreds of dollars.
The TSD Fuel Card, for example, offers significant savings for diesel trucks and RVs. Users can get fuel from most truck stops at fleet prices. The TSD card must be used at trucker lanes, and it does not work at auto lanes. The Pilot/Flying J app can be used with a standard credit card added to fuel at the truck island with no extra costs and a 5-cent discount.
TransConnect Services (TCS) offers a cash-secured fuel card with an average savings of 44 cents per gallon. TCS is known for providing big discounts on diesel, with no transaction fees at their in-network truck stops. The company also offers a Fuel Finder feature to locate in-network fuel stops and amenities on your route.
The Fleet One EDGE Card by WEX Inc. is part of one of the largest nationwide discount networks. It offers discounts on fuel, tires, hotels, wireless plans, repairs, and more. The EDGE Discount network includes Pilot Flying J, TA, Petro Stopping Centers, AMBEST, Quick Fuel, and Petroleum Wholesale, among others.
Fuel cards can provide significant savings for diesel fuel users, especially those with trucks or RVs. By utilising fuel cards, users can take advantage of discounted prices, convenient payment methods, and additional benefits such as discounts on related products and services.
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Fuel card fees
Fuel cards are a great way to save on diesel fuel and control expenses for companies that purchase large volumes of fuel. However, they often come with various fees that can impact their overall cost-effectiveness. These fees can be classified as follows:
Transaction Fees
Many fuel card programs attach a per-transaction fee, which can add up over time, especially for large fleets. These fees are usually small, but they can become a significant expense when multiplied by the number of transactions. Some cards, however, offer no transaction fees, providing transparency in pricing.
Monthly or Annual Fees
These charges are for keeping the account active. While they may seem insignificant at first, they can accumulate over time, especially for large fleets. It is important to note that some cards may waive certain fees if a specific quantity of fuel is purchased in a month.
Inactivity Fees
Inactivity fees are charged when a fuel card is not used for a certain period, usually ranging from one to three months. This fee incentivizes regular card use but can be a problem for businesses with seasonal operations or fluctuating fuel needs.
Account Setup Fees
Some providers charge a one-time fee for establishing a fuel card account, covering the administrative costs of setting up the account. This fee can vary significantly between providers.
Card Issuance Fees
Some providers charge a fee for each new card issued, including replacements for lost or damaged cards. This can be a significant expense for large fleets, especially if cards are frequently lost or damaged.
Minimum Usage Fees
These fees are charged when a fuel card does not meet a specified minimum spending threshold within a billing cycle. This ensures the provider recoups some revenue even if the card is underused, but it can be an unexpected cost for businesses with inconsistent fuel needs.
Non-Network Fees
Using a fuel card at stations outside the provider's preferred network can incur non-network fees, as these transactions are typically more costly to process. For fleets operating over a wide geographic range, these fees can become significant.
Other Fees
Other potential fees include late fees, paper statement fees, expedited shipping fees for replacement cards, and custom reporting or custom account project fees. Additionally, administrative tasks such as changing limits or updating company information may incur charges.
It is important for fleet managers to carefully review the terms and conditions of fuel card agreements to identify potential hidden fees and choose a provider with a transparent fee structure. While fuel cards offer benefits, understanding and managing these fees is crucial to maintaining financial efficiency.
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Cashback and waived fees
When it comes to saving money on diesel fuel, one popular method is to sign up for a fuel card program. These programs are designed to help fleet managers, business owners, and individuals save money on diesel fuel purchases. By enrolling in a fuel card program, you can receive a fuel card that offers various benefits, including cashback and waived fees.
One of the most attractive features of fuel cards is the opportunity to earn cashback on your diesel purchases. Depending on the program, you may be able to receive a certain percentage or amount of cashback for each transaction. For example, some cards offer a 5-cent discount per gallon of fuel purchased. This cashback can add up to significant savings over time, especially for those who frequently fill up their diesel vehicles.
In addition to cashback, fuel card programs often waive transaction fees, providing even more value to cardholders. These waived fees can include maintenance fees for your vehicles, such as charges for replacing mud flaps. By eliminating these extra costs, you can further reduce your overall expenses associated with diesel fuel.
It's important to note that different fuel card programs have varying fee structures. Some programs may charge annual or monthly fees for participation. However, the savings you accumulate through cashback and waived transaction fees can potentially outweigh the costs of being a part of the program. When choosing a fuel card program, it's essential to consider your specific needs, fleet size, and trucking routes to ensure you select the most cost-effective option.
Fuel cards also offer the convenience of purchasing diesel fuel at discounted prices. Cardholders can enjoy the benefit of paying the cash price or even receiving additional discounts at participating fuel stations. This ensures that you maximize your savings and make the most of your fuel card program membership. By understanding the participating gas stations and their locations, you can optimize your routes to take advantage of these discounted prices.
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Frequently asked questions
Diesel fuel prices have been higher than gasoline prices due to several factors, including U.S. refinery slowdowns, the pandemic, and the war in Ukraine. Diesel fuel is also taxed at a higher rate than regular gasoline, and there has been an increased demand for some of its components to be used in fuel for marine vessels.
In 2022, diesel fuel prices reached $4.99 per gallon, compared to $4.21 in 2023 and $3.96 on average for the first four months of 2024. While diesel prices remain high, experts predict that these figures will decline further in 2025.
The federal excise tax for on-highway diesel fuel is 24.3 cents per gallon, compared to 18.3 cents per gallon for gasoline. This higher tax rate contributes to the overall higher cost of diesel fuel compared to gasoline.
During the pandemic, the national supply of diesel fuel was disrupted as people drove less, reducing the output of refineries. However, freight and delivery trucks, which rely on diesel fuel, were still in high demand due to the increase in online shopping. Additionally, sanctions against Russia and the subsequent ban on importing Russian oil have impacted diesel reserves and contributed to lower supply and higher prices.
