FuelDataPortal: Freight & Haulers

EIA diesel benchmark drops 9 cents to $4.578 as the surcharge index falls for the 12th time in 13 weeks

The number your fuel surcharges run on just fell again. The DOE/EIA weekly retail diesel average dropped 9 cents to $4.578 a gallon, effective Monday and published Tuesday. It has now fallen in 12 of the last 13 weeks. The only break in the streak was a one-week jump back in early May, so the direction has been steady and down for most of the quarter.

For carriers that peg fuel surcharges to the EIA number, this is money back in the pocket on every mile. Because the surcharge is pegged to that weekly average, shippers will see it reset lower as the formula catches up. The question for haulers is how fast the retail street price follows.

Where the street price sits

Right now the two diesel gauges disagree, and the gap between them is wide by recent standards. The EIA weekly average is $4.578. The AAA average for Tuesday was $4.765, up a little under a cent from the day before. That is roughly 19 cents between the surcharge benchmark and what AAA sees at the pump on the same day.

A spread like that means the retail market is choppy enough that the timing of your fill matters. If you buy off the EIA reset while the street runs higher, the surcharge math tightens on you. Watch which way AAA moves this week to see whether the EIA drop is real relief or a lag that closes back up.

The SEED Act

Pilot Company's President of Energy, Jesús Guerra, is pushing the SEED Act, a federal blenders tax credit he says could cut trucking costs by about $1 billion. The pitch is that reinstating the credit lowers fuel volatility and boosts domestic biofuel production, which feeds into what carriers pay at the rack.

It is a policy proposal, not a signed bill, so nothing changes at your terminal today. For fuel buyers it is worth tracking, because a blender credit that moves biodiesel economics can shift diesel blend prices at the pump.

Crude and the strait

Two very large crude carriers loaded with Saudi crude are heading for the Strait of Hormuz, about 4 million barrels combined. The tankers, run by Nippon Yusen and Kawasaki Kisen Kaisha, had been stuck after Iran shut traffic through the waterway. Their movement signals the chokepoint is reopening, which could ease crude and take some pressure off diesel input costs if it holds.

What to watch

Watch whether AAA's street price closes the 19-cent gap to the EIA benchmark this week. Keep an eye on Hormuz traffic to see if it keeps recovering. And there is the SEED Act, which either picks up legislative traction or stays a talking point.