A fuel surcharge is critical to certain trucking operations, particularly when the fuel market becomes unpredictable.
Reuters reported on Monday, June 23, that oil prices briefly hit a five-month high following the latest U.S. military operations in the Middle East.
The U.S. Department of Homeland Security issued an advisory due to the ongoing conflict with Iran causing a “heightened threat environment in the United States.”
Outside of the conflict in the Middle East, two major California oil refineries are expected to cease operations. Phillips 66 plans to close its Los Angeles-area refinery in the fourth quarter of 2025.
“With everyday Californians already grappling with rising costs at the pump along with mounting utility bills, the prospective loss of yet another refinery should be a wake-up call,” California Assemblymember Mike A. Gipson (D-Carson) said in a statement. “We cannot ignore the broader implications this will have on fuel supply, job security and economic resilience across the state.”
Valero also announced its plans to close the Benicia refinery near San Francisco by April 2026.
While it’s unknown in the short term the effect of fuel prices, it’s important to be proactive when implementing a fuel surcharge in your business operations.
OOIDA recommends maintaining a fuel ledger with fuel being a trucking operation’s largest variable cost. A small change in those costs can have a significant effect.
Fuel prices are updated daily on this Land Line resources page.
Fuel reports released on Monday, June 23 showed a national average price per gallon of diesel of $3.609 (ProMiles.com) and $3.679 (AAA).
A fuel surcharge calculator is available on OOIDA’s website along with education on how and why to use one. LL
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