What Higher Fuel Prices Mean for the Trucking Industry and Consumers?

Fuel prices all around have seen drastic increases the last month or so and they continue to increase more and more. Truck drivers all over the U.S. are feeling the pain of diesel prices increasing and some are even suggesting this could put even more of a dent in the trucker shortage that is currently being faced, amongst other things.  

As of March 14th, the nationwide average price of diesel is $5.25 per gallon, which is the highest cost on record, and the price of on-highway diesel has risen more than $1 per gallon in the past two weeks – according to Fleet Owner.

Will This Have an Impact on the Trucker Shortage?

Some experts are saying one of three things could happen:

  • Drivers could decide to switch from cross-country trips to shorter distances,
  • Move from small truck companies to find work with larger ones,
  • Or, call it quits and park their trucks for good

In addition, smaller trucking companies are feeling the impact of these diesel prices extensively, as they have been getting hit harder than larger trucking companies when it comes to getting a discount per gallon. Smaller companies have been getting a five cent discount whereas large companies have been getting a 50 cent discount, WTHI-TV 10 reported.

How this Impacts Consumers?

Well for one, consumers are seeing an increase in fuel prices for themselves as well, but when it comes to how higher diesel prices can impact consumers, it’s simple really – consumers will be paying extra for certain goods and services. For example, Uber and Lyft have recently enacted temporary surcharges in an effort to deal with the rise in gas prices. Uber customers will reportedly pay a surcharge between $0.45 or $0.55 on each trip and Uber drivers will receive 100% of that money directly, officials at Uber said. Ride-sharing services are not the only thing expected to increase because of gas prices, but literally anything – groceries, electronics, etc. Unfortunately, there is not a short-term solution to the price hike, but if the prices continue to increase that’s when more problems could arise.

If you have any questions, comments, or concerns regarding this topic or anything else in the industry – please reach out to a team member today!

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