Diesel Discount Trends to Watch
With the price of diesel accounting for nearly a quarter of the cost of every mile, it’s no wonder finding the best price per gallon is such a focus for truck drivers – particularly for owner-operators answering to themselves for the cost of every shipment.
As arbitrary as diesel fuel prices can seem, there are actually multiple factors that impact pricing changes throughout the year. Understanding these influences as well as market trends can empower drivers and carriers to plan effectively for fuel costs. Read on to learn more about the seasonal shifts in diesel fuel prices and see how truckers can take advantage of these trends to find the best diesel discounts.
First, understand your use
Before embarking on a journey to uncover diesel discount trends, it's crucial to have a clear understanding of your fuel consumption. Tracking your monthly and yearly fuel expenses and analyzing how they change over time can provide valuable insights. By identifying patterns in your fuel usage, you can optimize routes, implement fuel-saving driving techniques, and plan your refueling strategy more effectively.
Also, aim to be aware of the competition among fuel retailers. Different retailers may adjust their prices differently not only based on market influences, crude oil prices, and ongoing trends but also unique factors like their regional footprint or sale volume. Being aware of these factors can help you make informed decisions about where to fill up your tank and take advantage of potential discounts.
Seasonal shifts in demand and diesel fuel prices
The good news is that diesel prices, for the most part, follow predictable cyclical patterns throughout the year. Costs rise in summer and drop in the fall – but there is more to it. Understanding these seasonal shifts can help drivers and carriers better plan for price swings and maximize diesel fuel savings.
January to February
The start of the year is also the best time for refineries to undergo whatever maintenance is needed or required. This often impacts production and supply nationwide – sometimes significantly. The reduced availability of diesel can lead to an increase in prices, which typically reach a high point for winter in February. So as you hit the road after the holiday season, you can be prepared to see a small surge in diesel costs.
April and May
As spring ushers in warmer weather, fuel retailers make the switch to summer-blend fuels. These summer blends are made with different oxygenates (fuel additives) to comply with environmental regulations, which make them more expensive to produce – and therefore more expensive for the consumer.
The “seasonal gasoline transition” from winter to summer blends began in 1995 as part of the Reformulated Gasoline Program (RFG), established through the 1990 Clean Air Act Amendments. The goal is to burn cleaner fuel during the busier and warmer months, reducing smog and toxic air pollutants. Retailers are required to sell only summer-blend fuel from June 1, although many make the switch sooner to ensure supply. Consequently, diesel prices tend to rise during this period.
Summer
Diesel fuel prices peak during the summer months, when vacation season is in full swing. As families hit the roads for summer adventures and trucking activity increases, the demand for diesel surges. This higher demand puts upward pressure on prices, affecting truckers' budgets more than other times of the year.
September
Drivers and carriers will see diesel prices start to drop as summer draws to a close. As people settle back into work and school routines, the demand for fuel decreases. Additionally, fuel retailers switch back to the more affordable winter-blend fuels as early as September 15. The stability of supply and transition to more affordable fuel means reduced diesel prices for the next few months.
Less predictable causes for price increases
While some price fluctuations follow predictable and seasonal patterns, others are less foreseeable and can catch truckers off guard. For example, late summer brings with it the risk of hurricanes and tropical storms, which can wreak havoc on refineries and disrupt fuel supply chains. These natural disasters can lead to decreased availability of diesel, pushing prices up due to increased demand and limited supply.
And like most industries, the fuel market is not immune to inflation. As we’ve seen recently across the nation and around the world, rising inflation can significantly impact diesel prices. These kinds of one-off and unpredictable influences all play a role in affecting the overall cost of fuel for truckers.
Plan to save
Navigating the complexity of diesel discounts takes focus and a solid understanding of the various factors that influence fuel prices. By tracking your fuel usage patterns and being mindful of seasonal shifts in demand and prices, you can strategically time your fuel purchases to maximize savings.
To stay ahead of diesel discount trends, consider using a reliable diesel prices app. Such apps provide real-time information on fuel prices, helping you find the lowest diesel prices wherever you are.
Taking a proactive approach to understanding and anticipating diesel discount trends can make a significant difference in your bottom line. Stay informed, compare prices, and seize opportunities to save on fuel costs as you crisscross the country.