This month in Washington, DC, two House Energy and Commerce subcommittees are holding a session to discuss fuel economy standards for private and commercial vehicles. The subject of the discussion is fuel efficiency. But how will that impact fuel prices for truckers?
Deregulation And Fuel Prices
The proposed bill will lower the standards for fuel efficiency across the country. Normally, deregulation can improve the economy, but rolling back the standard for fuel efficiency will negatively impact the trucking industry to the tune of billions of dollars. If passed, the bill will roll back fuel efficiency standards, giving vehicle manufacturers tax credits, retroactive to as far back as 2012. That’s a sizable sum for the car and truck industry. This bill will have far-reaching impacts on fuel prices, as well as wear and tear on trucks.
Lower Fuel Grades
Rolling back the standards on fuel efficiency means truck drivers will be spending green instead of going green. Environmental concerns aside, this is going to hit the trucking industry right in the wallet, even drivers. With lower efficiency standards, trucks will be running on lower grade fuel than they are used to. This will decrease the miles per gallon the average truck gets, which means that even though fuel prices prices may stay the same, or even drop, truck drivers will have to fill up their tanks more frequently to travel the same distance than they do now. Without regulations on cleaner running fuel, trucks will require more maintenance, and will need parts or entire vehicles will need to be replaced more often. The fuel prices may be a short-term benefit, but the financial impact on the trucking industry could be tremendous.
The energy industry is always looking forward, developing more efficient products for the trucking industry. In response, the EPA has raised standards to allow for better products to promote better driving, reduced fuel prices, and lower wear and tear on vehicles. Without that incentive, the short-term gains become long-term expenses for private vehicle owners, owner operators, fleets, and the trucking industry at large. This bill is just one in a series designed to roll back standards on fuel efficiency. While there hasn’t been a final word on the outcome of this proposed legislation, the discussion is not bound to end anytime soon. As always, we will be following this to keep you informed as things develop.
At Express Freight Finance, we specialize in freight bill factoring services, as well as comprehensive fuel card plans for independent truckers. Contact us today at 801-890-6570 to ensure your operation grows successfully.