This month the average diesel prices has risen to a record high of $5.473. This is a huge
jump in prices just from last month when the national average was less than $4.00. These diesel
increases are devastating for freight transportation companies that require fuel. Many diesel
trucks are paying close to $2,000 every time they fill up. With prices this high many companies
will be forced out of business as the cost to fill the tank has simply eaten away at any potential
profits. While an APU can help reduce some costs it cannot entirely eliminate the need for
diesel when it comes to freight.
Nearly 70% of freight is transported via truck. What this means is that if the companies
do survive these massive price increases the cost will be put off onto the consumer. Increasing
diesel costs have already contributed to the massive increase in inflation over the last year.
However, predictions are that consumers have not yet seen the worst of it as diesel is expected
to keep rising. The initial increase in diesel prices were due to the ban on Russian oil. While the
United States only receives a small percentage of its oil from Russia we are still trading in a
Global Market. After a major crisis occurs, oil prices tend to shoot up but take a significant
amount of time to come back down.
Consumers can expect to pay more for nearly all commodities across the board.
Everything from groceries, building supplies, and online ordering all come via trucks. If we
cannot get the cost of diesel down soon not only will businesses go under but consumers will
not be able to afford their current lifestyles. We hope APUs help offset some costs for freight
trucks, but we know this high cost of diesel is simply not sustainable.