Truckers thought the worst was over. Then diesel prices doubled
Truckers face higher operating costs as diesel reaches nominal record highs, and the Food Industry Association says grocery prices may lag by 30 to 45 days.
- Diesel prices in California reached a record $8.35 per gallon this week, up more than 60% from a year ago, significantly straining the trucking industry as the national average stood at $6.32.
- President Donald Trump signed an executive order earlier this week directing the Internal Revenue Service to waive penalties on red-dyed diesel and instructing cabinet departments to encourage states to waive fuel taxes and limitations.
- Avninder Singh, chief executive of Roadies, reported monthly fuel costs jumped to $450,000, wiping out profits for his Bakersfield-based company. Small-business truckers make up more than 90% of the industry but struggle to raise rates when fuel spikes, noted Lewie Pugh, executive vice president of the Owner-Operator Independent Drivers Assn.
- The Food Industry Association cautioned that diesel price spikes reach grocery stores within 30 to 45 days, while the Group of Seven agreed on October 2 to release 100 million barrels of emergency oil reserves.
- Between August and September, at least 16 freight companies filed for bankruptcy amid record diesel prices. David Spencer, vice president of market intelligence for freight-broker Arrive Logistics, cautioned that supply-demand imbalances leave the industry susceptible to unexpected shocks.
13 Articles
13 Articles
California diesel tops $8 a gallon, pushing truckers to the brink
The economics of trucking are deteriorating fast — and it's particularly bad in California. Fresno-based Jagroop Singh Deol operates two gas-guzzling rigs. One hauls refrigerated produce from California to the Midwest and brings back pet food, meat and auto parts.…
Diesel costs expose truckers to a cash squeeze
For trucking companies facing a sudden fuel-price jump, the immediate danger is a mismatch between the bill they must pay and the money they can collect. A higher delivery charge may eventually recover the expense. It does not necessarily finance the next tank. At JD & LA Trucking in Wilmington, California, co-owner Angel Diaz recently saw diesel advertised at $8.38 a gallon, against just over $5 earlier this year. The company operates 20 trucks…
Los Angeles Times
Political WireLos Angeles truckers agonize over $8 diesel prices
Los Angeles truckers agonize over $8 diesel prices
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