UNP · 10-Q · 2026Q2 · Full report
Fuel Cost Pressure
UNION PACIFIC CORP · 2026-07-23 · Importance 69 · Surprise 64 · From source text
Union Pacific’s locomotive diesel fuel price averaged $3.86 per gallon in the second quarter of 2026, up 60% from $2.42 per gallon in the second quarter of 2025. Fuel expense increased to $1.6 billion in the quarter, contributing to a 13% increase in operating expenses and a 0.7-point deterioration in the operating ratio. Management attributed the increase to higher locomotive diesel prices and increased gross ton-miles, partly offset by a 1% improvement in fuel consumption.
Key facts
- Second quarter 2026 freight revenues from fuel surcharge programs increased to $1.0 billion compared to $569 million in Q2 2025. source
- Average locomotive diesel fuel prices averaged $3.86 per gallon in Q2 2026 and $3.27 per gallon year-to-date 2026, compared to $2.42 per gallon in Q2 2025 and $2.46 per gallon year-to-date 2025. source
Impact estimates
| metric | direction | stage | expected | basis |
|---|---|---|---|---|
| revenue | positive | realized | +6.3% | Second quarter 2026 freight revenues from fuel surcharge programs increased to $1.0 billion compared to $569 million in Q2 2025. |