Any driver on the road can take a look at the signs for their local Mobil or Exxon station and know that gasoline is getting more expensive, alongside seemingly everything else in America. But truck drivers know a larger crisis exists than regular gasoline – the price of Diesel fuel.
According to Business Insider, analysts say the price of diesel is in its worst crisis since the 1970s. With a US average cost of $5.56, prices are up over 75% from last year.
Why Is Diesel a Crisis?
Diesel shortages are affecting the entire world, and diesel is especially in short supply on the East Coast of the US. This puts the whole supply chain at risk. Owner-operators will struggle to get fuel. Small trucking companies will have to restrict what freight they can deliver.
Trucking drives the American economy, and diesel is the fuel of the American economy. A shortage in diesel fuel causes rising prices for truck drivers and trucking companies. This cost then gets passed down to the end consumer.
Americans are now facing inflation plus a housing affordability crisis plus the added costs to all consumer goods due to a diesel shortage. All this occurs in the wake of a COVID pandemic that shut down small businesses and restricted access to schools. This paints a picture where some Americans got crushed, while others did very well.
The measure of an economy is more than GDP and unemployment statistics. The American economy depends on the costs-of-living being affordable to… well… live. A diesel crisis puts this into question.