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22.03.26 - 04:42
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"Going To Cripple Our Economy": Small Businesses Sound Alarm Over Record Diesel Price Spike (ZeroHedge)
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"Going To Cripple Our Economy": Small Businesses Sound Alarm Over Record Diesel Price Spike
The latest AAA fuel data from across America shows that the national average diesel price at the pump has jumped nearly 40% this month, surpassing the 2022 fuel spike that followed Russia's invasion of Ukraine.
Surging diesel prices are already generating a shock across trucking, rail, shipping, farm equipment, construction machinery, generators, and much of industrial logistics, given that the fuel powers the core of the economy.
Seasonality: AAA Daily National Avg. Diesel 2022 vs. 2026
Companies now face three difficult choices if they did not lock in fuel prices before the spike: absorb the impact and accept margin compression, add surcharges, or raise prices.
Last week, Rapidan Energy's Director of Refined Products, Linda Giesecke, told us that, "unlike 2022, the current tightness reflects physical supply disruptions rather than policy risk and trade reshuffling."
Giesecke warned that if the fuel ...
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20.03.26 - 22:54
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Diesel Costs Become New Worry as Gallon Surpasses $5 (Bloomberg)
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The average price for a gallon of diesel in the US blew past $5 this week for only the second time in history. (Russia's 2022 invasion of Ukraine marked the fuel's first foray into previously unfathomable territory.) Although most consumers are far more concerned with the price of gasoline, it's the even sharper increase in diesel that has businesses on alert. That's because it powers nearly every industry, from the tractors plowing the fields to the machinery erecting buildings to the semitrucks, trains and buses that transport goods and people coast-to-coast. Diesel is the trucking industry's second-largest expense, after driver pay, accounting for about a fifth of operating costs, according to Bob Costello, chief economist at American Trucking Associations. Bloomberg News Oil Reporter Nathan Risser joins Bloomberg Businessweek Daily to discuss. He speaks with Carol Massar and Tim Stenovec. (Source: Bloomberg)...
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