UNP · 10-Q · 2026Q3 · Full report

Fuel Cost Pressure

UNION PACIFIC CORP · 2026-10-22 · Importance 69 · Surprise 64

Union Pacific said locomotive diesel fuel prices climbed to record levels amid continued supply chain pressures in the third quarter of 2026. The average price per gallon rose 64% year over year, to $4.21 from $2.56, contributing to higher fuel expense; the company cited higher fuel prices as a driver of operating expense increases in both the quarter and year-to-date period. Fuel expense was $1.040 billion in the third quarter and $2.621 billion for the first nine months of 2026.

Key facts

• UNION PACIFIC CORP locomotive diesel fuel averaged $4.21 per gallon in third-quarter 2026 and $3.59 year to date, compared with $2.56 and $2.49, respectively, in the corresponding 2025 periods. source
• UNION PACIFIC CORP operating expenses increased 15% in third-quarter 2026 compared with third-quarter 2025; locomotive fuel prices climbed to record levels and average price per gallon increased 64%. source
• UNION PACIFIC CORP fuel consumption rate improved 2% in both third-quarter and year-to-date 2026 compared with the corresponding 2025 periods. source