Gas prices are decreasing - better outlook for the transportation business? Read on to find out.
In June 2022, diesel gas prices reached their all-time high with a national average hitting close to $6/gallon. This proved to be disastrous for many truck drivers and transportation businesses as rates on loads went down while gas prices reached their all-time high leaving many drivers stranded and unsure what to do. Drivers along with transportation companies saw huge losses and couldn’t sustain to continue operating under such poor economic conditions.
While the past few months proved difficult for many owners and drivers alike, things are looking better as the season of transportation starts in full swing this fall. Gas prices are decreasing across the board with a national average for diesel being around $4.90/gallon currently (mid-August). This is the biggest decrease in gas prices the US has seen in over six months. With diesel being over a $1/gallon cheaper than just a few months ago, this means drivers and owners can reap the benefits of good business again.
What does this mean for owner operators?
One of the biggest expenses for a truck driver is gas. The lowering of gas prices by almost $1/gallon –close to 16% reduction since June – means truck drivers can see higher earnings and profits. This makes the business more profitable again and easier to navigate. Filling up the tank doesn’t have to be as painful anymore.
Of course, it would be ideal for gas prices to go down further, for right now it’s a good sign that they’re consistently falling over the past few weeks from their all-time record high. As drivers come back into the business again, freight is continuing to move and get to its destinations. With lower gas prices, everything is easier and faster to transport from baby formula to big box items such as furniture. All of this alleviates poor economic conditions and fills the shelves allowing people to get their hands on products they need – combating high demand but low supply situation causing high inflation rates on everything.