Companies Combat High Diesel Costs With New Strategies
Corporations are using hedging and logistics technology to offset surging U.S. highway diesel prices.
Updated on Oct. 15, 2026 in Inflation
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As U.S. on-highway diesel prices reached $6.18 per gallon as of October 12, 2026, major companies have implemented new tactics to manage fuel expenses. These strategies aim to mitigate the impact of rising costs following the start of the Iran war.
Why it matters
Managing logistics costs is increasingly critical for national supply chains, as diesel prices have risen by $2.51 year-over-year. Businesses are turning to specialized operational adjustments to maintain stability amidst this economic pressure.
U.S. on-highway diesel prices hit $6.18 per gallon, representing a $2.51 increase compared to the prior year. The impact of these costs is compounded for large-scale operations like United Natural Foods, which manages 50 distribution centers and 2,000 vehicles.
The players
United Natural Foods
This food distributor maintains a large logistics network across the country including 50 distribution centers and 2,000 delivery vehicles.
Samsara
This technology company provides a platform that monitors transportation data to help fleets optimize delivery routes and reduce miles traveled.
Costco
This warehouse club operator manages its transportation expenses by negotiating lower contracted shipping rates to offset fuel surcharges.
McCormick and Company
This food company utilizes a proprietary Comprehensive Continuous Improvement program to systematically identify and mitigate logistics costs.
The details
United Natural Foods uses fuel hedging to lock in fixed diesel rates and the Samsara platform to optimize delivery routes. Other firms are also adapting, with Costco utilizing lower contracted shipping rates and McCormick and Company employing a Comprehensive Continuous Improvement program to lower logistics costs.
Timeline
September 15, 2026: United Natural Foods presented fuel mitigation tactics at a conference.
October 1, 2026: McCormick and Company discussed cost mitigation strategies on an earnings call.
October 12, 2026: EIA data reported that U.S. on-highway diesel prices reached $6.18 per gallon.
Macro View
The current corporate efforts to manage fuel costs follow a pattern of logistics adaptation established during previous periods of severe energy price shocks like the 1973 oil crisis. These strategies reflect a historical cycle where firms prioritize operational efficiency when energy costs spike.
Increased logistics costs for major distributors can lead to higher shelf prices for everyday grocery items. Households may see these added expenses reflected in their monthly food budgets as companies attempt to pass on a portion of their elevated transportation costs.
The takeaway
Companies are successfully using technology and financial contracts to buffer the impact of volatile fuel markets. Consumers should monitor for price changes in goods that rely heavily on long-haul shipping as firms navigate these sustained energy costs.
Further reading
For more on the current economic environment, visit our United States Inflation section.
Source note: This article includes information reported by Supply Chain Dive.
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