Politics · Sun Belt Post
Record-high diesel prices are putting new pressure on trucking companies and consumers. According to GasBuddy, the national average price of diesel reached $5.82 a gallon on Thursday, surpassing the previous record set in 2022. California drivers, however, are paying significantly more: $8.29 at Oakland's Golden Gate Petro station and $8.39 at a nearby Shell station.
Experts attribute California's higher diesel prices to higher taxes, limited refining capacity, and the escalating wars in Ukraine and Iran. Aaron Smith, a professor at UC Berkeley, explained that these conflicts reduce oil availability, increasing both gasoline and diesel prices. Additionally, government policies requiring biofuel in diesel supply raise costs.
Truck drivers are already feeling the impact; one driver spent $330 on fuel, up from less than $200 before the Iran war began. Bill Aboudi, president of A-B Trucking, said his company has had to pass some costs to customers, including a 15% fuel surcharge on top of an existing 40% surcharge. The concern for consumers is that these transportation costs could eventually affect the price of nearly everything.
Rey "R.T." Trevino, president of Pecos Country Energy, noted that high diesel prices mean everything else will be higher because it takes diesel to transport goods. Oakland resident Brittney Sterling said rising food prices are already stretching her budget, forcing her to rely on family for meals when her $300 monthly budget runs short. Experts expect diesel prices to remain high due to ongoing conflicts and lack of seasonal demand decline.
Trucking companies are calling for the federal government to temporarily eliminate the national gas tax for relief. Until then, higher fuel costs will likely continue to affect Bay Area consumers.
Source: CBS News
