Billions in Class I Railroad Savings, Hiding in Plain Sight

The six U.S. Class I railroads burned 3.08 billion gallons of diesel in 2025 at a delivered cost of $7.58 billion, according to Schedule 750 R-1 filings. With diesel prices sharply higher in 2026, the same fuel volume would cost about $12.65 billion today—an increase of $5.07 billion before any additional freight moves.

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The HIDDEN FUEL COST IMPACT

Railroads are penalized twice for inefficiency: aging locomotives burn more fuel than necessary, and the price of that fuel has surged. Gulf Coast ULSD averaged $2.2224 per gallon in 2025, but by August 2026 its trailing four-week average had risen to $3.935.