Fuel Price Report for 1/27/2021

The US Energy Information Administration’s fuel cost report for the week of 1/25/2021 has indicated that on-highway diesel fuel prices have hit a 45 week high, highest since March, 23 2020, with a national average of $2.716 per gallon of diesel fuel.

The national average on-highway diesel price has been climbing steadily at an average of $.0287 since November 3, 2020, which could be reflective of the change in leadership and philosophy on Energy in the United States.

Interestingly enough, in the 13 weeks prior to November 3, 2020, the national average in diesel price dropped from $2.428 per gallon to $2.372, which indicates a relatively stable national average diesel price during that time period.

Judging from the trends in the past three months, I expect the cost of fuel to continue to rise and could potentially return to the steep prices we saw in 2014. Should the cost of fuel continue to rise at the same rate mentioned above over the course of the next year, the cost of diesel would reach prices we have not seen in twelve and a half years (August 18, 2008 at $4.207 per gallon of diesel fuel).

While that significant of an increase in fuel costs might be a reach, I can reasonably predict that fuel costs will continue to increase over the next quarter and potentially into Q2 of 2021.

Nolan Grush, CTB
Carrier Relations Specialist