April Fleet Update: Rising Fuel Pressure Meets Strong Remarketing Conditions

By Dale Jewell, Senior Manager, Fleet Maintenance

Fuel costs are rising amid Middle East uncertainty, while strong remarketing conditions and tightening vehicle supply create an important window for fleet action.

As the second quarter gets underway, fleet managers are navigating a dynamic environment shaped by fuel price volatility, an unexpectedly strong remarketing market, and tightening vehicle availability. Together, these trends are creating both cost pressures and opportunities, particularly for fleets evaluating replacement timing and acquisition plans.

Fuel Price Outlook: Near-Term Pressure Influenced by Global and Regional Factors

Fuel prices remain a central concern for fleets nationwide. The current national average is approximately $4.16 per gallon, with projections pointing to a near-term increase through April, potentially reaching around $4.30 per gallon.

In addition to seasonal trends, geopolitical developments in the Middle East are adding to the uncertainty in the outlook. In particular, restrictions affecting the Strait of Hormuz remain a key variable that could influence fuel pricing through the summer, given its critical role in global oil supply.

Regional dynamics are also playing an important role:

  • The West Coast is expected to remain the highest-cost region, consistent with historical trends.
  • A planned refinery closure in the Los Angeles area this spring may add further upward pressure to West Coast pricing.
  • The Gulf Coast and Midwest are expected to continue offering the lowest fuel prices in the country.

Prices are expected to ease modestly through May and June. However, pricing will likely remain elevated compared to historical norms.

In this environment, fleet managers are focusing on practical cost-control strategies:

  • Optimizing routes and reducing unnecessary fuel consumption
  • Leveraging fuel management tools such as Union Leasing’s fuel price tool within MyDriverLink to find the most cost-effective fuel options nearby
  • Planning budgets with short-term volatility in mind

Remarketing Market Defies Seasonal Expectations

While fuel trends are putting pressure on costs, the vehicle remarketing market is presenting notable upside. Typically, the spring selling season peaks in late March or early April. This year, however, the opportunity has extended into April longer than expected. Higher consumer tax refunds and delays in processing those funds have helped sustain buyer demand beyond the normal seasonal peak.

Market conditions remain comparable to 2023, with elevated vehicle values and strong dealer demand as they work to replenish inventory. This continued price strength creates a favorable environment for selling.

For fleet managers, this presents a clear opportunity:

  • Now is a good chance to dispose aging and underutilized vehicles.
  • Dealer demand remains high.
  • The window to act has extended, but not indefinitely.

Timing Matters: Acting Before Seasonal Softening

Despite current strength, seasonal patterns still point to an eventual slowdown.

Remarketing activity typically softens as summer approaches. While that decline has not yet materialized, and the market remains resilient into mid-April, it is still expected in the coming months.

Fleet managers who act now may be better positioned to:

  • Maximize resale values before demand softens.
  • Free up capital for reinvestment.
  • Avoid holding vehicles in a weaker selling environment.

Timing remains a critical lever in capturing value in today’s market.

Vehicle Acquisitions: Tightening Supply Requires Early Action

On the acquisition side, recent OEM updates are signaling the need for more proactive planning.

GM has announced it will wind down production of several medium-duty models, including the Silverado 4500HD, 5500HD, and 6500HD, by late 2026. While this is a targeted shift, it may require fleets relying on these units to evaluate alternative configurations or adjust specifications.

At the same time, Stellantis has indicated that order banks for the 2026 model year are filling quickly, with a recommended order window closing in April to secure production slots, pricing, and incentives. Availability may become increasingly constrained as capacity is allocated.

For fleet managers, this reinforces a few key actions:

  • Review upcoming replacement cycles for exposure to impacted models.
  • Evaluate alternative vehicle options where needed.
  • Submit orders as early as possible to secure availability.
  • Maintain close coordination with partners on timing and supply.

Delays in ordering may lead to fewer options, higher costs, or missed production windows.

Looking Ahead

As these dynamics evolve, aligning strategy across fuel management, remarketing, and ordering cycles will be important. With the right approach and the right partner, fleet managers can navigate uncertainty, capture opportunities, and move forward with confidence.

Contact us to learn how we can help you navigate the current fleet landscape.