26 Kentucky Trucker Profit margins are crucial to running a successful business. In a competitive market when costs are higher than usual, it’s important to keep an eye on them. You already know that diesel fuel prices are high. According to the U.S. Energy Information Administration July 25, 2022, a gallon of diesel in June 2022 cost $5.75. Of that $5.75, crude oil accounts for 47%, refining 29%, distribution and marketing 14% and taxes 10%. The following table shows a few of the prices recorded July 25, 2022, along with the one-year price change. Gas and diesel are listed so you can see how much more expensive diesel is than gas and how much bigger the price hike is for diesel. Also, although Kentucky isn’t on the coast, it’s often grouped with east-coast states. Regardless, truckers travel everywhere in the continental U.S. and sometimes into other countries such as Canada or Mexico. They are likely to encounter a wide range of prices. Region July 25, 2022 (Gas) One-year change (Gas) July 25, 2022 (Diesel) One-year changes (Diesel) U.S. $4.330 +1.194 $5.268 +1.926 East coast $4.206 +1.197 $5.299 +1.988 Midwest $4.227 +1.197 $5.241 +1.983 Gulf coast $3.831 +1.025 $4.911 +1.832 Rocky Mountain $4.656 +1.058 $5.389 +1.742 West coast $5.266 +1.383 $5.982 +2.048 West coast minus California $4.931 +1.379 $5.615 +2.005 Semi-trucks have a capacity of 120-150 gallons. Experts recommend filling up to 95% of the total fuel capacity and never KTA: COUNTER HIGH DIESEL FUEL PRICES WITH SMART CHANGES going below 25%. That means someone filling the tank when it is 25% full would need to buy 84-105 gallons of diesel and (if you use the U.S. average reported for July 25, 2022, and round down) spend more than $440-$550. Multiplying the number of gallons by the one-year increase for diesel, the cost is more than $160-$200 over what the same fuel would have cost a year earlier. Regularly repeat the process — which must be done as part of the cost of doing business — and watch the profit margins go down. Alternatively, you can use the following techniques to improve your gas mileage, compensate for higher prices and increase profit margins. Train Drivers About Efficient Driving Techniques Acceleration: Since acceleration burns extra fuel, driving at a constant speed and avoiding acceleration as much as possible saves fuel. Strongly consider cruise control or adaptive cruise control, or anticipate acceleration points and accelerate as smoothly as possible. There’s a side benefit to avoiding surges of acceleration: it is easier on the engine. Braking: Do what you can to avoid frequent, continuous braking. You lose energy every time you brake. Instead, maintain a good distance between your vehicle and whatever is ahead of you, and try to anticipate the need for slowing down. Also, pay attention to changing road conditions to avoid surprises. Shifting: If you have to shift manually, you burn extra fuel every time because the
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