Fuel Costs Now Rival Truck Payments as Top Expense
Best for owner-operators and small-to-mid crews running multiple trucks
Summary
Wichita Tree Service owner Robert Phillips told KWCH that diesel has climbed to one of his company's top expenses, behind only truck payments and repairs. With large equipment burning 40-50 gallons per hour and pump prices above $5, Phillips is turning down distant jobs that no longer pencil out. His company has raised prices about 30%, but he says that still doesn't fully cover rising fuel and equipment costs.
TSN Take
Phillips is doing what every owner should be doing right now: running the math job by job. When fuel jumps from $2.80 to over $5, that 90-minute drive to a one-day removal can eat your margin alive. Route optimization, fuel surcharges on bids, and being willing to walk away from unprofitable contracts aren't optional anymore. If your pricing hasn't moved in the last 18 months, you're losing money on every truck roll.
Why It Matters
Fuel is now a top-three expense for most tree companies, and a 30% price increase may not be enough to cover it. Owners who don't recalculate job costs and travel radius are quietly subsidizing customers out of their own pockets.
Read the full story at KWCH 12
Read Source ↗Operator Question
Have you added a fuel surcharge or raised your minimum travel radius this year?