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The price of diesel has risen to an all-time high, straining the trucking industry

The price of diesel has risen to an all-time high, straining the trucking industry

price diesel It hit an all-time high in the US this week as energy markets around the world grapple with ongoing turmoil amid Russia Invade Ukraine.

The average price for a gallon of diesel was $5,296 on Sunday, up about 4.3% from a week ago and nearly double what it was one year ago.

Gas prices were also higher, reaching $4,187 a gallon on Sunday, slightly down from an all-time high of $4,331 on March 11, according to the AAA.

diesel

Although gasoline prices have fallen recently, the price of diesel fuel is still high, says the sign at the Flying J Truck Stop in Pearl, Missouri, Wednesday, April 20, 2022. (AP Photo/Rogelio V. Solis/AP Newsroom)

While ordinary Americans feel the pain at the pump with rising gas prices, the trucking industry has been hit hard by the diesel surge.

“The prices are going up, and we’re still not getting good prices for the loads,” Michel Agboire, who works at Maitland Trucking, said. WNCN . said. “If the price goes up more than this, and the price of the load doesn’t go up, we might call it termination.”

US crude oil on track for five months of gains

The high cost of diesel is partly passed on to consumers for everything from electronics to groceries.

gas prices

Gas prices are displayed at a gas station in Long Beach, California, Wednesday, March 9, 2022. The average price of a gallon of gasoline in the United States hit a record $4.17 on Tuesday as the country prepares to ban Russian oil imports. (AP Photo / Ashley Landi (AP Photo/Ashley Landis/AP Newsroom)

“To cover the increased cost of diesel, truck drivers must increase the rates charged for freight transportation. Those increased prices are then passed on to consumers through the higher costs at the retail level,” said Ron Faulkner, president of Faulkner Trucks and president of the 2022 California Trucking Association. , I wrote in an opinion piece on The Sacramento B this week.

“So you’re paying the price for higher fuel prices at both the pump and the grocery checkout line.”

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The overall inflation was Four decades high In March, the Consumer Price Index, which measures a broad basket of goods, jumped 8.5% compared to March 2021.

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