Good News for Trucking Industry
Trucking companies enjoying low fuel prices can expect that trend to continue, according to this article on truckinginfo.com.
The average retail price of diesel, which hovered at around $3.83 per gallon in 2014, dipped to $2.71 in 2015, and is expected to fall even more in 2016, according to a report created by the U.S. Energy Department.
The Short Term Energy Outlook predicted diesel prices to fall to $2.67 in 2016. Average prices have been dropping, including a weekly price of $2.37 in December, which is the lowest weekly diesel fuel average since June 2009.
This news comes as a time where gasoline prices are also falling and fuel consumption is projected to increase. The report predicts a 1.5% increase in liquid fuel consumption after a 0.8% increase in 2014. These prices were sparked by continued growth in the economy, particularly in employment. Predictions for 2016 include another 0.8 percent growth.
Distillate fuel has seen a fall in consumption of 0.9%, and a fall in demand overall in other nations, especially China. Demand hasn’t seen as much growth, which explains a large part of a drop in demand for crude oil and another indicator of lower prices. However, it is forecast to increase by 1% next year because of an increase in manufacturing, foreign trade, and marine fuel.
This is good news for consumers looking for relief from high gas prices, and is particularly good for the trucking industry, which counts fuel as a major portion of its operating costs in fueling its trucks. The Department of Energy adds that the per-barrel price of crude oil is expected to fall within a range of $30 to $62, an indicator that there is some uncertainty in the marketplace.
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