According to the Energy Information Administration (EIA), the national average price is $3.726 per gallon, down from $3.758 on May 27 and $3.789 on May 20. The Gulf Coast boasts the lowest average price at $3.450 per gallon, followed by the Midwest at $3.592. On the other hand, California has the highest average price at $4.968 per gallon.

The EIA attributes the decline in demand for distillate fuels, used primarily in trucking and home heating, to a slowdown in manufacturing and an unexpectedly mild winter, with daily demand dropping to 3.67 million barrels.

Additionally, the supply of renewable fuels is abundant, according to the EIA.

Source: The Trucker

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Since 2010, the annual registration fee has been $250 for small businesses and non-profits, and $2,575 for large businesses, with a $25 processing fee for all registrants. The new proposal increases fees for small businesses and non-profits to $375 per year, and for large businesses to $3,000 annually, the maximum allowed by current law.

Carriers can prepay registration fees for up to three years. If approved, those who have prepaid may need to pay additional fees for future years. The public has until August 22 to comment on the proposed rulemaking on the Regulations.gov website using Docket No. PHMSA-2022-0033.

Reason for Fee Increase

The federal registration program funds the Hazardous Materials Emergency Preparedness grants program and collects data on hazardous materials transportation. The 2021 infrastructure law increased grant funding by $18.5 million, creating a funding gap.

PHMSA data revealed that total funds collected for the 2022-23 registration year were about $24.6 million, falling short of the $46.8 million needed for emergency preparedness grants. “To achieve full funding of the grants program at the increased amount, PHMSA will need to adjust the fees for the national hazardous materials transportation registration and fee program” the agency stated.

Impact on Small-Business Truckers

In September 2022, PHMSA issued an advance notice of proposed rulemaking to ensure adequate grant funding. The Owner-Operator Independent Drivers Association (OOIDA), representing 79% of the 32,202 hazardous material registrants who are small business truckers, opposed the fee increase.

“Most of OOIDA’s members are single-truck owner-operators who manage all aspects of their business operations,” the Association wrote. “Another increase in small-business regulatory fees would further disadvantage individuals who in many cases are already operating on much thinner margins compared to larger, corporate carriers.” Despite their opposition, the Association acknowledged the need for increased fees to fund the grant program.

PHMSA acknowledged concerns over the 50% fee increase for small businesses compared to a 16% increase for large businesses but noted that the actual dollar increase for large businesses is three-and-a-half times that for small businesses. “PHMSA remains hopeful that Congress will raise the $3,000 statutory cap, allowing for future adjustments to large businesses to make the fee distribution even more equitable and allowing PHMSA to collect and expend the authorized funding level of $46 million.”

Source: Land Line

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According to the Energy Information Administration (EIA), the national average price as of May 13 was $3.848 per gallon. This marks a decrease from $3.894 per gallon on May 6 and $3.947 per gallon on April 29, showing a consistent downward trend.

The Rocky Mountain region is the only area in the country where prices have risen. In this region, the average price of diesel increased slightly to $3.791 per gallon as of May 13, up from $3.785 on May 6.

On the West Coast, diesel prices are notably higher, though they have still been steadily decreasing. The average price is now $4.551 per gallon, down from $4.580 on May 6 and $4.625 on April 29. This gradual decline provides some relief to drivers in this region, who typically face the highest fuel costs in the country.

In contrast, the Gulf Coast continues to enjoy the lowest average diesel prices in the nation. As of May 13, the average price there is $3.559 per gallon, down from $3.617 on May 6 and $3.657 on April 29. This region’s consistently lower prices are a significant advantage for local drivers and businesses.

On the East Coast, the average diesel price is $3.916 per gallon as of May 13. This represents a decrease from $3.966 per gallon on May 6 and $4.025 per gallon on April 29. The declining prices in this region are particularly beneficial for the heavy traffic and high transportation demands along the eastern seaboard.

Looking ahead, the EIA forecasts that diesel fuel prices will average $3.92 per gallon in the second quarter of 2024, $3.99 in the third quarter, $4.15 per gallon in the fourth quarter, and $4.18 per gallon in the first quarter of 2025. These projections, released earlier this year, suggest a gradual increase in prices over the next year, reflecting expected fluctuations in supply and demand.

Source: The Trucker

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