May 2025 Fuel Price Drop: Strategic Cost-Saving Tips for Shippers

At Gain Consulting, we’re committed to helping U.S. shippers navigate the ever-changing logistics landscape with data-driven strategies. The Bureau of Transportation Statistics (BTS) released its latest motor fuel price update for May 2025 on June 3, 2025, revealing a continued decline in both regular motor gasoline and diesel prices. With gasoline down 12.6% and diesel down 8.5% year-over-year, these trends offer cost relief for shippers, particularly in trucking-heavy operations. This blog post analyzes the BTS fuel price data, explores regional variations, and provides actionable recommendations to optimize transportation budgets in 2025.

May 2025 Fuel Price Overview

The BTS report highlights a downward trend in motor fuel prices, providing a window of opportunity for shippers to manage costs effectively. Key findings include:

• Regular Motor Gasoline:

  • National Average: The average price for regular motor gasoline in May 2025 was $3.15 per gallon, a 0.7% decrease from April 2025 ($3.17) and a 12.6% drop from May 2024 ($3.60). This decline reflects stabilizing oil markets, increased U.S. production, and softer global demand, as reported by the U.S. Energy Information Administration (EIA).

  • Regional Breakdown:

    • West Coast: $4.23 per gallon (down 9.2% from May 2024), the highest due to strict environmental regulations and state taxes.

    • Rocky Mountain: $3.13 per gallon (down 8.4%), benefiting from proximity to refineries.

    • Central Atlantic: $3.11 per gallon (down 14.9%), reflecting competitive supply dynamics.

    • Midwest: $3.01 per gallon (down 12.2%), a freight hub with cost advantages.

    • New England: $2.97 per gallon (down 16.6%), the largest year-over-year decline, driven by lower seasonal demand.

    • Lower Atlantic: $2.91 per gallon (down 14.3%), the lowest, supported by Gulf Coast refining capacity.

• Diesel No. 2:

  • National Average: Diesel prices averaged $3.50 per gallon in May 2025, down 1.9% from April 2025 ($3.57) and 8.5% from May 2024 ($3.82). Diesel, essential for trucking, benefits from the same market dynamics as gasoline but remains costlier due to refining complexity and steady freight demand.

Key Takeaway: Gasoline and diesel prices are down significantly from last year, with regional gasoline prices ranging from $2.91 (Lower Atlantic) to $4.23 (West Coast), offering shippers cost-saving potential, especially in lower-price regions.

Why Fuel Prices Matter for Shippers

Fuel costs are a critical component of transportation expenses, particularly for trucking, which handles over 70% of U.S. freight by volume, according to the American Trucking Associations. The May 2025 BTS data has several implications for shippers:

1. Lower Fuel Surcharges: The 12.6% drop in gasoline and 8.5% decline in diesel prices reduce fuel surcharges, a standard pass-through cost in carrier contracts. This translates to lower per-mile rates, particularly for long-haul trucking in cost-effective regions like the Midwest and Lower Atlantic.

2. Regional Cost Variations: The West Coast’s $4.23 gasoline price is 45% higher than the Lower Atlantic’s $2.91, creating significant cost disparities. Shippers in high-cost regions face elevated expenses, while those in the Lower Atlantic or Midwest can capitalize on savings.

3. Diesel’s Impact on Freight: Despite the 1.9% monthly diesel price decrease, diesel’s $3.50 per gallon price drives trucking costs, especially for heavy-duty fleets. High-volume shippers must account for diesel’s volatility in budgeting.

4. Budgeting Stability: Year-over-year price declines provide predictability for 2025 planning, but shippers should remain cautious. The EIA notes that global oil market fluctuations and potential trade policies (e.g., tariffs) could disrupt this stability.

5. Sustainability Pressures: Lower fuel prices may reduce incentives to adopt alternative fuels, but shippers face growing pressure to meet environmental goals. Trucking’s diesel consumption, contributing significantly to CO2 emissions, pushes companies toward greener options like biodiesel or electric vehicles.

Key Takeaway: Falling fuel prices offer cost relief and budgeting stability, but regional disparities and sustainability demands require strategic planning to maximize savings and align with ESG objectives.

Strategic Recommendations for U.S. Shippers

To capitalize on the May 2025 fuel price trends and mitigate risks, Gain Consulting recommends the following strategies:

1. Leverage Regional Price Advantages: Optimize trucking routes in low-cost regions like the Lower Atlantic ($2.91) and Midwest ($3.01) to reduce fuel expenses. Use a Transportation Management System (TMS) like FreightSideKick to identify cost-efficient lanes and avoid high-cost areas like the West Coast ($4.23).

2. Negotiate Fuel Surcharge Caps: With diesel prices down 8.5% year-over-year, negotiate carrier contracts to cap fuel surcharges, locking in savings. Engage with carriers like XPO Logistics or Saia to secure favorable terms, using EIA fuel price data as leverage.

3. Consolidate Shipments: Reduce fuel consumption by consolidating shipments to minimize vehicle-miles traveled (VMT). For example, combining multiple orders into full truckloads can lower per-unit costs, especially in diesel-heavy operations.

4. Monitor Fuel Market Trends: Track EIA diesel and gasoline price indices to anticipate surcharge fluctuations. Subscribe to BTS updates or platforms like DAT One for real-time fuel cost insights, enabling proactive budgeting adjustments.

5. Explore Fuel-Efficient Modes: Shift bulk freight to rail or waterborne transport, which have lower energy intensity per ton-mile, as per BTS’s National Transportation Statistics. Partner with BNSF or Norfolk Southern for rail options to reduce diesel reliance and emissions.

6. Invest in Sustainability: Align with ESG goals by adopting fuel-efficient or alternative-energy fleets. Collaborate with carriers like FedEx Freight, which is testing electric trucks, to lower your carbon footprint while leveraging diesel’s current price advantage.

7. Diversify Carrier Portfolio: Balance reliance on national carriers with regional providers like Old Dominion or Estes to access competitive rates in low-cost regions. Use Freightos to compare pricing and secure capacity.

8. Prepare for Peak Season: Anticipate tighter capacity and potential fuel price spikes in Q4 2025, especially for e-commerce. Secure carrier commitments early and negotiate volume-based discounts to mitigate costs.

Key Takeaway: Shippers can maximize savings by optimizing routes, negotiating surcharges, consolidating shipments, monitoring trends, exploring alternative modes, investing in sustainability, diversifying carriers, and planning for peak season.

How Gain Consulting Can Support Your Success

Gain Consulting is your trusted partner in navigating fuel price fluctuations and optimizing your supply chain in 2025. Our tailored solutions help U.S. shippers turn market trends into competitive advantages:

• Cost Optimization: Design routing and carrier strategies to leverage low-cost fuel regions and minimize surcharges.

• Technology Integration: Deploy TMS and analytics platforms to track fuel costs, optimize routes, and enhance visibility.

• Sustainability Strategies: Develop low-emission freight plans using rail, waterborne, or alternative-fuel options.

• Market Intelligence: Provide real-time updates on fuel prices, BTS data, and industry trends to inform budgeting and planning.

The May 2025 BTS fuel price data highlights a critical opportunity for U.S. shippers to reduce transportation costs amid declining gasoline and diesel prices. By partnering with Gain Consulting, you can transform these insights into actionable strategies that drive efficiency and profitability. Contact Gain Consulting today to build a resilient, cost-effective supply chain that thrives in 2025’s dynamic market.

Sources: Bureau of Transportation Statistics, Motor Fuel Prices, June 3, 2025; U.S. Energy Information Administration, Gasoline and Diesel Fuel Update, May 2025; American Trucking Associations, Freight Economy Report, 2025; Bureau of Transportation Statistics, National Transportation Statistics, May 30, 2025.