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Diesel prices creating sticker shock for truck companies

Higher prices could trickle down and push inflation up everywhere else
Published: May. 11, 2022 at 6:47 PM CDT
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SHERMAN, Texas (KXII) - According to AAA, the national average for a gallon of diesel is $5.55, and is currently the highest recorded average.

In Sherman and Denison, the average falls at $5.26, almost double the price a year ago.

“Diesel has never ever in the history of the U.S. been as high as it is right now, so we’re living in unprecedented times, and there’s really not a way out of it,” said Jim Grundy, the CEO and owner of Sisu Energy LLC.

With diesel prices breaking records, truck drivers like Paris, who transport water are reeling with sticker shock.

“One of the trucks that I drive, it probably takes about 60 to 80 bucks, when diesel prices were, you know, at a normal rate or a little bit below normal, but now that everything is skyrocketed, it’s taking over $100 bucks,” said Paris K. “It’s taking between $120 and $150 on a good day.”

Trucking experts said the global supply chain deficit is pushing up prices at the pump.

The labor shortage also contributes to the strain on the freight industry and means it will cost companies a prettier penny to get their goods from point A to point B.

“If I was working on my own dime, then you know I would have to move some things around, but I’m pretty sure it’s costing a hole in someone’s pocket somewhere,” said Paris.

It’s not just companies that will pay.

Because trucking is woven so deeply into the economy, Grundy expects diesel prices to trickle down, making inflation even worse for people who buy these products.

“There’s not a lot of extra income these folks have that can support a fifty percent increase in food and a seventy percent increase in retail clothing and gasoline doubling in the last three months,” said Grundy.

Grundy thinks diesel could continue to stay high until 2024.

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