All around the world we haul a lot of our goods via semi-trucks. There are at least two million tractor trailers in operation in the United States. In 2006, the transportation industry logged 432 billion miles and had a revenue of $255 billion so over the road transportation of goods is an important part of our economy. Trucks deliver 70% of all freight that is transported in the United States each year, and those goods have a value of $671 billion.
What is the most expensive part of owning and operating a truck? Besides drivers, it is diesel fuel. Trucks don’t get good mileage, and when they’re on the road, drivers can’t shop for the best deal. They have to keep fueled and keep driving. What factors affect the price of diesel?
- The cost of crude oil is the most important factor in the price of diesel. It is estimated that crude oil represents 56% of the cost of diesel, so although there is more to making diesel fuel ready for consumption, crude is the most important part of the recipe.
- Another factor determining the cost of diesel is the international demand for distillate fuel. Distillate fuel is turned into diesel fuel—but it is also turned into heating fuel. If Scandinavia has a cold winter, they will need more fuel for heating which can cause a shortage of an ingredient used to make diesel fuel. Also, other countries use even more diesel fuel than America, and if their demand outpaces their supplies, we can literally pay for their increased demand.
- Supply and demand in the United States is also an important determining factor in the cost of diesel fuel. Our trucking fleets rely almost exclusively on diesel. When production and refineries have to decrease or stop production due to events like hurricanes, everyone who relies on fuel will eventually pay the price.
It is not uncommon to see diesel prices fluctuate $.20 over the course of a month. That can be both frustrating and expensive, but there are many factors that can impact the costs of diesel, both at home, and worldwide. Looking for the best priced diesel station? Take a visit to Hartland Mobil today, not only do we fuel, but we also have an expansive craft beer collection but they also have the largest wine selection in Highland MI!