One industry analyst warns that a gallon of diesel could reach $ 10 by the end of summer.
Wenatchee, Washington — Diesel fuel is empowering the US economy. Almost everything we consume, whether by boat, truck or train, is carried by diesel.
Rising diesel prices are burdening consumers everywhere.
“I think it’s shit,” said Brian Snyder, who runs an asphalt company in Wenati.
Asphalt sealers are delivered $ 3,000 more per truck than last year, according to Snyder, as truck companies often apply fuel surcharges to their customers when prices rise. As a result, he was forced to raise customer rates by 20%.
Snyder believes oil companies are digging into the transportation industry to make up for the losses during the COVID-19 pandemic.
“Where do they gouge us? They gouge at the truck driver level where they have to use diesel fuel,” Snyder said. “It’s not rocket science.”
According to AAA, the national average for a gallon of diesel is $ 5.55. This is an increase of 36 cents from last month. Washington’s average is even higher at $ 5.72 per gallon, up 23 cents from a month ago.
Diesel is also important for agricultural use.
Rising diesel prices can force farmers to plant and reduce fertilizers, limit already tight food supplies, and push food prices beyond additional transportation costs.
The Western States Petroleum Association (WSPA) states that it results in supply and demand issues.
“Some diesel supplies that would have been here for the war have been exported to Europe,” said Kevin Slangle, a WSPA spokesman. “Furthermore, looking at supply chain demand, diesel demand from pandemics is very high.”
Phil Verleger, a leader in energy economics, told CNN this week that tight supply could bring the average price of US diesel to $ 10 per gallon by the end of the summer.
He warned that rising diesel prices could put a brake on the US economy.
The national average price for regular gasoline is $ 4.42 per gallon. This is an increase of nearly 50% from last year.
“Everyone there is paying for it and they need to get angry,” Snyder said angry at oil industry executives.
“It doesn’t help to demonstrate our industry and men and women who provide reliable and affordable energy,” Slagle argued. “It does not address the policy issues at the heart of the matter. They need to be discussed.”