Diesel fuel prices and what they mean for your costs
Fuel is one of the biggest costs a trucking company carries, and it changes every week. This guide shows where the weekly diesel price index comes from, how to read it, and how to turn it into your own cost per mile and fuel surcharge.
Why the weekly diesel price matters
A truck that runs well on paper can lose money in a month when fuel jumps and the rates you booked don't move with it. Small carriers feel this first, because they buy fuel at the pump with no room to absorb a surprise.
Watching the weekly price lets you see a rise coming, adjust the rates you accept, and check that any fuel surcharge you're owed is figured correctly. It also feeds the cash station of the circle we teach: you can't keep cash in the bank if you don't know what the next tank will cost.
This page doesn't list this week's price. Prices change every week, so we point you to the source instead.
Where the numbers come from
The U.S. Energy Information Administration (EIA), part of the U.S. Department of Energy, publishes retail on-highway diesel prices every week in its Gasoline and Diesel Fuel Update. Many people in trucking call it the "DOE price."
The update gives a U.S. average and averages for regions of the country, so you can see what fuel costs where you actually buy it. Many shippers and brokers use the EIA national or regional average as the reference price for fuel surcharges.
For a look ahead, EIA's monthly Short-Term Energy Outlook includes a diesel price forecast. Treat any forecast as a guess, not a plan.
- Published weekly by EIA
- U.S. average plus regional averages
- Retail price at the pump, taxes included
- Commonly used as the fuel surcharge reference
What goes into a gallon of diesel
EIA breaks the retail price of diesel into four parts. Knowing them helps you understand why prices move. Source: EIA.
Crude oil
The cost of the crude oil refined into diesel. When world oil prices move, diesel usually follows.
Refining
The cost and margin of turning crude into diesel. Refinery outages and seasonal demand for heating oil can push this up.
Distribution and marketing
Getting fuel from the refinery to the pump, plus the station's costs and margin.
Taxes
Federal and state taxes per gallon. State taxes differ, which is one reason prices vary from state to state.
Turn the weekly price into your numbers
Find your real miles per gallon
Use your own fuel receipts and odometer, not the truck's spec sheet. Track it over at least a month of loaded and empty miles.
Figure fuel cost per mile
Divide the price per gallon by your miles per gallon. At 6.5 miles per gallon, every 10-cent change in diesel moves your cost about 1.5 cents per mile.
Check your fuel surcharge
A common method is: (current reference price minus the base price in your contract) divided by an agreed miles-per-gallon figure equals the surcharge per mile. Make sure the base price, the MPG figure and which EIA region is used are written in your agreement.
Update your floor rate
Add the new fuel cost per mile to your other costs. That's the lowest rate you can take without losing money this week. Our freight market guide shows how to compare it with the market.
Ways small carriers keep fuel costs in check
- Plan fuel stops by state, since state taxes and pump prices differ.
- Cut idle time, and keep speed steady on the highway.
- Keep tires at the right pressure and the truck on its maintenance schedule.
- Avoid deadhead miles by researching the reload before you accept a load.
- Keep every fuel receipt; you need them for IFTA reporting. See our IFTA guide.
- Look at fuel discount programs, and read the terms before you sign.
Let us track the numbers with you
Our back office service handles billing, paperwork and IFTA help, so your fuel records and surcharges are kept straight.
Questions and answers
How often does EIA update diesel prices?
Weekly. The Gasoline and Diesel Fuel Update is normally released each Monday, and later in the week when there's a federal holiday.
Is the 'DOE price' the same as the EIA price?
Yes. EIA is the statistics agency within the U.S. Department of Energy, so people often call its weekly diesel average the DOE price.
Does the EIA price include taxes?
Yes. EIA's weekly retail prices include federal and state taxes. That's why regional averages differ.
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Questions about fuel costs or surcharges?
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