Diesel Prices are Increasing…Again

Diesel price increases are happening again. On September 4, the AP reported an average of $5.85 per gallon. As this article goes to press, on September 10, AAA reports a national average of about $5.98. 

That, friends, is expensive.

It’s also a record. A dubious one, but a record nonetheless. 

We talked a bit about the causes in a prior article, so we won’t go over them again here. What we will do is take a quick look at how rising diesel might impact your operation. 

• Customers may get more cost-conscious. If a truck (or trucks) are getting more expensive just to run, maintenance budgets may get scrutinized. Shops may face more questions about estimates or delay nonessential work.
• Mobile repair gets more expensive. A mobile shop is powered by diesel (OK, coffee too). When diesel prices rise, a service truck covering a wide territory suddenly costs more per call. You might want to revisit trip charges, fuel surcharges, mileage fees, service areas, or even route planning. Fuel surcharges have also been discussed in the Diesel Community, with one shop reporting it had implemented a .70 per mile surcharge (join the conversation — they’re kicking around a lot of ideas!).
• Parts and supplies may creep up. Diesel prices hit everyone, including the trucks hauling parts, tires, fluids, and other supplies. Shops might see higher freight charges or supplier pricing, even if the actual component price hasn’t changed much. 
• Downtime becomes even more expensive. If there is anything resembling a silver lining in all this, it’s that preventive and predictive maintenance may become even more valuable to your customers. When everything is more expensive, a downed truck or emergency repairs becomes even more painful. Helping your customers stay ahead of potential breakdowns can make you an MVP in their eyes. 

None of this means shops need to panic. Diesel prices move, sometimes dramatically, and there’s no telling how long this spike will last. For now, keep an eye on your operating costs, talk openly with customers if those costs start affecting your pricing, and make adjustments where you need to.

We’ll be keeping an eye on things, too.