UNP · 10-Q · 2026Q2 · Full report

Fuel Supply Chain Pressure

UNION PACIFIC CORP · 2026-07-23 · Importance 69 · Surprise 64

Union Pacific reported significant fuel-market pressure, with the average locomotive diesel price rising 60% to $3.86 per gallon in the second quarter from $2.42 in the prior-year period. Management attributed the increase to supply chain pressures, while higher gross ton-miles also increased fuel consumption needs. Fuel surcharge revenue rose to $1.0 billion from $569 million, partially offsetting the effect of higher fuel prices, although the company noted a fuel-price lag impact. Fuel consumption efficiency improved 1% in the quarter and 2% year to date, providing a partial operational offset.