Diesel price protection, explained for fleets with hedges

Your hedge locks in most of your diesel. What a spike does to the gallons it leaves open, and how to cover them with no margin account.

For fleets that already hedge · By Hedjee · October 11, 2026 · 1 min read

Diesel in 2026

U.S. average diesel price, a gallon

Diesel

Feb. 23, 2026

Diesel

Sept. 21, 2026

Record high

+$2.72 a gallon in 7 months

Sept. 21 was the highest weekly price since EIA’s records start in 1994 (not counting inflation).

Source: EIA weekly diesel prices

Even big hedgers leave gallons open

About 7 in 10gallons of fuel Sysco expects to buy in the coming year already have a set price.The other 3 in 10 will be bought at market prices, unless locked in later. Sysco’s numbers as of June 2026.

Source: Sysco 2026 annual report (10-K)

Then come gallons nobody planned for: new work, extra trucks, a busier season. A hedge set months ago doesn’t grow with them.

See how Sysco locks in its diesel.

The open gallons take the whole spike

About $9 million

what a 10% rise in diesel could add to Sysco’s fuel cost, on the fuel it hasn’t locked in

Source: Sysco 2026 annual report (10-K)

Fuel surcharges help, but they can run behind. Covenant Logistics, a trucking company, usually bills its surcharge on an earlier week’s price. So when diesel climbs, it gets back less than it pays. And your customers feel what your surcharge passes on.

What protection is, next to futures and swaps

With diesel price protection, you pick the gallons, a cap (the most you want to pay a gallon) and a period. You pay one fee per gallon, up front.

Compared	Futures or swapsLock a price, both ways	Hedjee, on the open gallonsOnly the gallons your hedge leaves open
Diesel rises	The deal pays you the difference.	If what you pay averages above your cap, Hedjee pays you the difference.
Diesel falls	You pay the difference, so your cost may not fall as far.	You keep the lower price. You owe nothing back.
Cash	Futures need a margin account, and may call for more cash when prices fall.	One fee per gallon, up front. No margin account, no cash calls.
Based on	A market price, such as the Gulf Coast monthly average.	The prices your fleet actually pays for those gallons.

Source: CFTC futures glossary; Covenant Logistics 2025 annual report (10-K)

What you can do

Keep your hedge, your suppliers and your surcharge. Hedjee covers only the gallons your hedge leaves open, so no gallon is covered twice.

Bring your fuel plan to a free 20-minute call: what your hedge covers and what you expect to buy. We’ll find the gallons left open.