Diesel prices nearly $3 dollars a gallon higher than last year cut into companies’ bottom lines
FARGO, N.D. (KVRR) – If you thought the price of unleaded fuel is too high, be glad you don’t drive a vehicle running on diesel.
According to the Energy Information Administration, diesel fuel sold in the Midwest is $2.94 cents more expensive per gallon than this time last year.
Companies charge customers a fuel surcharge when prices rise raising costs on what they’re delivering.
Higher diesel prices could force farmers to scale back planting or fertilizing, limiting already tight food supplies.
An owner of a Fargo based trucking company says he’ll be paying $42,000 more in diesel per truck than last year.
He’s finding ways to be frugal.
“I was driving slower down the highway. As far as with the business, I have the truck shut off every moment that I can that I don’t have to have the engine running,” Owner of Thompson Transport Vern Thompson said.
Energy economist Phil Verleger worries the tight supply of diesel could send the nationwide average price to $10 a gallon.
The Biden Administration is considering an emergency declaration to help ease the shortage. It would allow the president to release fuel from the Northeast Home Heating Oil Reserve that was only used after Superstorm Sandy in 2012.
Some analysts say the impact of the release would be minimal and only help for a short period of time.