During the pandemic, fuel prices dropped substantially due to dwindling demand. People weren’t going to work or school, so prices dropped to an average of $2.258 (gasoline) and $2.551 (diesel) per gallon.
When lockdowns ended, prices started to soar. When the pandemic ended, diesel reached $4.989 and gasoline hit $4.059. These are U.S. averages, too. Prices were higher in some regions than others.
At the end of August 2024, gas prices were relatively stable at $3.433 per gallon. Diesel is a little more expensive at $3.651. Other than the summer increase to account for higher demand as families took vacations and a higher cost of producing summer blends, prices all year have been in that range.
A Historical Look at Gas Prices After Elections
Presidential elections impact gas prices, too. Historically, November’s vote and January’s inauguration do affect the price of gas. Voters place fuel prices very highly when it comes to presidential ratings. Take a look at the price of gas after the past five elections and inaugurations.
- 2004 – $2.023 (Election) and $1.875 (Inauguration)
- 2008 – $2.208 (Election) and $1.84 (Inauguration)
- 2012 – $3.521 (Election) and $3.391 (Inauguration)
- 2016 – $2.295 (Election) and $2.458 (Inauguration)
- 2020 – $2.20 (Election) and $2.42 (Inauguration)
Gas prices are already at an average of $3.507 for August. Considering past trends, prices should continue to slowly fall or remain stable. Once a new president is elected, they’ll likely increase. It’s a good time to prepare for the expected price increases.
Check Tire Pressure
Tire pressure is one of the most important things for your drivers to check before they set off. Not only is a tire more likely to blow if the pressure is low, but it also affects braking. Low tire pressure increases fuel consumption, so the truck needs to fill up more often. At higher gas prices, that quickly gets expensive.
Also, replace tires when the tread depth is diminished. A lack of tread on your tires increases the risk of hydroplaning. Drive and trailer tires need a minimum of 2/32 of an inch per the FMCSA. Steer tires must have a minimum of 4/32 of an inch.
Plan Routes Carefully
Nothing wastes gas more than a poorly planned trip. If your driver is making part of the trip with an empty trailer, it’s a waste. If you’re not prepared for construction, seasonal route closures, or tolls, you’re also making a big mistake. You need to have staff who are scrutinizing every trip to ensure the route is as efficient as possible.
You cannot always rely on GPS. It’s handy to have, but your drivers also need guidance. There’s a route in Vermont that saves a lot of time, but tractor-trailers can’t navigate it. Despite numerous LED signs alerting truck drivers to use the next turnaround, many ignore it and try anyway. Specialized tow trucks are needed to get tractor-trailers unstuck and off the winding, narrow mountain road.
This is where navigation is essential. You need someone to double-check routes and make sure there are no obstacles like that and that the GPS you use isn’t overlooking important restrictions. It’s also helpful to have someone checking for construction and weather delays. Sitting and waiting in traffic is a waste of fuel. The better your route plans, the more fuel you save.
Another benefit of route planning is that you can ensure trailers are full. Instead of driving to your destination with half a trailer full, fill it with the work from two or more brokers or shippers. You get more money for the one trip. Fill the trailer for the return trip, too.
Using a load-finding app is an easy way to find partial loads to fill your trailer. Sort by destination, size, and payment. It’s worth looking for an app to help you. Use the free credit checks offered at TBS Factoring to investigate a potential new client’s history of payments before you agree to work for them.
Schedule Tune-Ups
A tune-up includes inspection and replacement of multiple components on your car. Air filters, fuel injectors, and spark plugs get dirty and clogged over time. That keeps the engine from efficiently burning gasoline or diesel. With regular maintenance, fuel efficiency increases.
A general guideline is to have a semi in for service every 12,000 miles or so. Much of this depends on how long routes are and what’s being hauled. Don’t let it go past 15,000 miles. Your owner’s manual should have charts detailing how often to take care of things. This is important if there is an active warranty.
Secure Fuel Discounts
Fuel discounts are essential for navigating increasing costs. Even if fuel prices are stable, fuel discounts help you store up cash for fluctuating costs months or years from now. You also have the chance to put aside money for truck maintenance, tires, and tune-ups.
When you arrange freight factoring with TBS Factoring, you can have payments sent directly to your fuel card. You always have funds available. Plus, TBS offers fuel discounts as high as 90 cents per gallon. If you’re filling up a tank with 100 gallons, that’s a savings of $90 on one fill-up. It adds up fast.
Build Up a Healthy Cash Reserve Now
Right now is a great time to build up a reserve of cash. Freight factoring is a service that makes it easy. If you’re currently invoicing your clients and waiting months to get paid, it gets costly. You reach that month when you have three urgent bills, but there’s only the money to cover two of them. Who do you leave out?
Instead of facing those tough financial choices, send your bills of lading to TBS Factoring. We pay you the money that’s owed minus a small fee. You get paid within a few days of delivering the load, and that makes it possible to pay all of your bills on time. No more late fees, dings on your credit report, or higher interest rates due to poor credit.
Freight factoring fuel discounts, immediate payments, and heightened truck maintenance all help keep expenses down. One thing that’s also available with TBS Factoring is insurance discounts.
We work with dozens of insurance providers to ensure our clients get the best possible insurance rates. Stop overpaying for the same coverage.
Sign up free and talk to TBS Factoring’s experts about the services that help you save money. With so much to offer and nothing to lose, freight factoring is a smart way to keep a steady flow of revenue all year long.