Diesel Fuel Payback

Feb. 10, 2015 – This little item appeared in Vulcan Materials’ recently released fourth-quarter and full-year 2014 report: “Compared to last year, fourth quarter cost of revenues for the company benefitted approximately $7 million from lower diesel fuel costs, with most of this benefit realized in the aggregates segment.”That’s a cool $7 million saved as a result of lower fuel prices. There is certainly a larger economic argument to be made concerning the impact of low fuel prices, but at ground zero, it is freeing up some budgeted capital for aggregates operations, trucking companies, construction firms and others that rely on fuel in the tank to make their businesses run.