US Truckers ‘Barely Getting By’ as Diesel Prices Soar

A trucker fuels up at the Love's Truck Stop in Springville, Utah, on Dec. 1, 2021. George Frey/AFP via Getty Images

American truckers are finding it difficult to make ends meet amid elevated diesel prices, with fuel shortages worsening the problem.

At the beginning of 2022, the retail price of diesel in the United States was $3.61 per gallon. This has now jumped more than 47 percent, to $5.32 per gallon, as of Oct. 31.

“You’re really not making the money you were making before … You’re barely getting by right now,” Chris, a Las Vegas-based truck driver, told Fox News. “The only people that will survive are the bigger companies … The smaller ones won’t make it.”

As of Oct. 14, the United States only had 25 days of reserve diesel supply, which is the lowest level since 2008. Since Joe Biden assumed the presidency, total national stockpiles have fallen by 34 percent.

Diesel drives industry, from power generators and farm tractors to construction machines; trucks, trains, and ships, too, are all powered by the distillate fuel. Diesel moves 90 percent of all freight in the country and worldwide.

It’s dominant in machines used in critical industries such as mining and agriculture, and there’s a ripple effect across the economy when the price of diesel moves up.

On Oct. 31, fuel supplier Mansfield Energy warned that the shortage of diesel will be “painful” at a macro level.

A tight supply will force diesel prices to go up, making it too expensive for some people. This could bring pain to the American economy as businesses cut down costs and consumers slash spending, it said.

In an interview with WIS News, Rick Todd, president and CEO of the South Carolina Trucking Association, said that the supply-chain snag in diesel is primarily due to a lack of refining capacity and increased demand that usually accompanies the busy holiday season.

Truck drivers are scrambling from one freight terminal to another looking for fuel, he said. “What you have is economic Darwinism and survival of the fittest and hope it doesn’t get that bad … Filling up a truck with fuel is like buying gold right now.”

Diesel Shortage

Speaking to The Epoch Times, Dan Kish, senior vice president of the American Energy Alliance, pointed out that one of the reasons for the tight diesel market is the rise in gasoline prices.

As gas prices rose, the demand for diesel-fueled transportation rose, pushing up diesel prices as well, Kish stated.

“A lot of people got priced out of gasoline, or they’re just not driving as much because it’s more expensive. But they still need to get goods, and instead of going into the grocery stores to buy things, they have them delivered. That increases demand for diesel,” he said.

In a note on Oct. 25, Goldman Sachs warned that the shortage of diesel will likely push up prices higher in the future. The investment bank pegged the diesel scarcity on factors such as the disruption in operations, refinery closures, and underinvestment in refining capacity.

As freight trains and long-haul trucks run mostly on diesel, rising diesel prices will also raise the prices of food and goods across the nation. The Goldman Sachs analysts noted that Washington’s attempt to contain energy prices will likely fail as it largely focuses on crude oil and has little impact on refined fuels.

Allen Zhong contributed to this report.