Fri, May 09 2008
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Published March 26, 2008 11:27 pm - Skyrocketing diesel a ‘crippling’ cost Companies, county commissioners, individuals feeling pinch By Donna Hales Phoenix Staff Writer
Diesel prices are crippling trucking companies, says the terminal manager for Fanelli Brothers Trucking and Leasing in Muskogee. “Diesel jumped 40 cents a gallon in the last two or three weeks,” said Ned Russell, terminal manager for Fanelli. “It’s largely increased the expense of any trucking company. It’s crippling them more and more.” Fanelli Brothers is paying $30,000 for a tanker of fuel that used to cost $7,500, Russell said. Some of the larger trucking companies in the nation issued statements this week they’ll be getting away from the long-haul market and going to regional markets, he said. “I didn’t think I would ever see it,” Russell said. The average price of diesel fuel used to be lower than the average price of gasoline, according to information on the federal Energy Information Administration’s Web site. The EIA says since September 2004, the price of diesel generally has been higher than regular gasoline for several reasons, including: • Cost and supply of crude oil. • Tight refining capacity and international diesel fuel demand, which has been increasing steadily, putting pressure on the tight global refining capacity. • Product supply/demand imbalances. • Seasonality in the demand for diesel fuel and distillates. In the United States, the transition to low-sulfur diesel fuel has affected diesel fuel production and distribution costs, EIA said. Also, the federal excise tax on diesel is 6 cents higher per gallon (24.4 cents per gallon) than the tax on gasoline, according to the EIA. It’s not just the big truck lines that are affected by the increase in diesel costs. County commissioners haven’t seen the price escalate so much in years, said District One County Commissioner Gene Wallace. 
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