Desperate truckers have revealed the pressure of skyrocketing fuel prices, while suppliers warned “some cities could dry up for a few days”.
Diesel per gallon rose to nearly $2.00 over the past year, with prices rising from $3,634 to $5,312.
Gas prices, however, saw a much-needed drop to $3.758 a gallon this week, but were still up $0.356 from last year’s $3.402.
According to the American Trucking Association, the trucking industry carried 72.2 percent of all freight shipped to the United States in 2021, equivalent to 10.93 billion tons.
In the same year, it accounted for 80.8 percent of the country’s freight costs on sales of $875.5 billion.
The association registered 38.9 million trucks used for business purposes, excluding government and farms, in 2020, accounting for 24.1 percent of all registered trucks.
During the same year, 44.8 billion gallons of fuel were consumed by these trucks, typically 35.8 billion gallons of diesel fuel and 9.0 billion gallons of gasoline.
Desperate truck drivers have revealed the pressure of skyrocketing fuel prices, while suppliers have warned “some cities could dry up for a few days”.
Diesel topped the $2.00 per gallon mark with prices rising from $3,634 to $5,312 over the past year. However, gas prices fell to $3,758 a gallon this week – still higher than last year
That’s why truck drivers have voiced their fears, telling Fox News that rising fuel prices have made them “work for peanuts.”
One driver said: “It literally costs my company 30 or 40 percent of the expenses for refueling.
Another said: “Diesel prices are very high at the moment, it is harder for companies to make money from the high prices.
“Also, interest rates have gone down, so you’re not really making the money you made before you’re barely making ends meet right now.”
According to Indeed calculations, the average salary for a truck driver in the US is $71,207 per year.
Corporate team riders are typically paid $0.48 to $0.75 per mile up to 6,000 miles per week, which is estimated at $3,154 per week.
The company’s solo riders are seeing $0.40 to $0.64 per mile up to 3,000 miles per week, averaging about $1,183 per week.
While owner-operator drivers are seeing an average of $0.94 to $1.79 per mile up to 3,000 miles per week, with an estimated average of $3,163 per week.
Diesel topped the $2.00 per gallon mark with prices rising from $3,634 to $5,312 over the past year. However, gas prices fell to $3,758 a gallon this week – still higher than last year
Every year, around 800,000 drivers leave the profession – although experts say that rising diesel prices could push other drivers out
One driver commented that to benefit from an average day, he would have to drive farther as fuel prices have contributed to higher operating costs.
“We have to drive more than we normally do, that’s like 400, 500 miles a day, so we can make a little bit of money. we [now] have to drive about 600 miles,” he said.
About 800,000 drivers leave the profession each year, according to WCPO, while experts said rising diesel prices could displace more drivers.
The Energy Information Administration (EIA) reported that the US had just 25 days of diesel in reserve as of October 14, a low not seen since 2008.
The Biden administration said it is closely monitoring diesel stocks and is working to increase deliveries after it was announced that reserves were being exhausted.
A White House official told Fox News that the administration is closely monitoring diesel stockpiles, particularly on the East Coast, and is in touch with US energy companies to build reserves and seek solutions.
The official added that the administration has also been in regular contact with East Coast governors for months, providing them with tools including the Northeast Home Heating Oil Reserve (NEHHOR).
Mansfield Energy, the supplier led by CEO Michael Mansfield, issued the recommendation to ensure companies are prepared.
Businesses dependent on the fuel have been ordered to take steps to plan for the potential shortage of supplies, largely caused by Russia halting imports after invading Ukraine
According to the American Trucking Association, the trucking industry carried 72.2 percent of all freight shipped into the United States in 2021, and the drop in fuel prices could cause people to exit the industry
Businesses dependent on the fuel have been ordered to take steps to plan for the potential shortage of supplies, largely caused by Russia halting imports.
This means that the companies will not receive as many petroleum products as they did before the invasion of Ukraine.
It impacted refineries as they had to switch production from gasoline to diesel. This means they may run out of gas.
The diesel shortage is also caused by high demand for distillate (heating oil and diesel), refinery maintenance and reduced refinery capacity.
Businesses can protect their fuel supplies and reduce their risk of downtime by issuing emergency fleet cards.
These enable traceable access to fuel. You can also use a small tank for emergency fuel.
Mansfield Energy assured consumers that for the most part, gas stations will find supply and remain operational.
She added that for this reason, gas stations are unlikely to have bags over the pumps and the main ongoing impact is likely to be higher prices for customers.
It comes as Biden considers capping US fuel exports to lower prices and replenish inventories.
However, this is an idea not supported by refiners. You said that this action would likely reduce inventories.
The refiners added that it would reduce domestic refining capacity and put pressure on fuel prices for consumers and alienate US allies amid the war in Ukraine.