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How Gas Prices Affect BYX and Our Customers

Gas prices fluctuate by the day. This is nothing new, but the conflict between Ukraine and Russia has caused an exceptionally painful spike. The current average price per gallon in Los Angeles County is currently $5.52, with diesel averaging $5.85, but some stations are charging over $6 per gallon. Trucking companies feel the sting of elevated fuel prices more acutely than most. To fill up a 100-gallon diesel tank costs about $585. If you’re thinking “ouch,” so are we. 

Gas prices look very different than they did in recent months. The average prices are up by 57 cents/gallon from just last month. It’s hard to believe that at this time last year, gas only cost $3.73 a gallon. Inflation is hardly a new dilemma, but now its effects are more pronounced than they have been in decades. 

Shipping companies use something called “fuel surcharge.” A fuel surcharge is a flat rate that allows the cost of fuel to be incorporated into shipping rates in a fair manner and allows shippers to have a fixed fuel cost they can count. Fuel surcharge is an important part of us continuing to operate our business and is set by the Energy Information Administration (EIA) and updated weekly. 

Rising Gas Prices May Lead to Rate Hikes Down the Line

Before you panic, BYX just updated our rates at the start of 2022, and we hope to keep them stable for some time. Still, we prefer to be transparent with our customers so they understand why price increases have to happen. It goes without saying that elevated gas prices make transporting goods more costly. The farther the pickup, the more the additional fuel expenses are felt. 

The hike isn’t just felt by trucking companies. Every rung of the transportation ladder is effected, including cargo vessels and moving freight by air. Coupled with the existing supply chain crisis and materials shortage, the cost of everything is likely to increase, not just gas prices. Maintaining our fleet, from replacing tires to changing the oil, is more expensive than it was a year ago. Read more