Truckers brace for higher costs as diesel spikes
Pennsylvania diesel prices have hit a record, and trucking leaders say the higher costs will eventually reach consumers.
YORK COUNTY, Pa. —
Diesel prices in Pennsylvania have reached a record $6.35 per gallon, surpassing the previous high of $6.33 set on May 18, 2022, and experts say the rising costs will eventually be passed down to consumers.
“Diesel, when it is as high as it is now, has a major impact on the movement of freight and costs in the trucking industry,” said Rebecca Oyler, president and CEO of the Pennsylvania Motor Truck Association.
Nearly every product consumers interact with has been transported by truck at some point. In York County, 400 million tons of goods are imported and exported annually, with about 90% of that traffic relying on diesel-powered trucks.
“It’s about even — 200 million comes in, 200 million goes out. About 90% of that is coming in or going out via truck traffic, which obviously is very heavily dependent on diesel,” said Kevin Schreiber, president and CEO of the York County Economic Alliance.
The financial impact of rising diesel prices is significant. Last year, 200 gallons of diesel cost approximately $800, but now that same amount costs closer to $1,270.
“That’s an extra $475 per truck. And if you’re a small company that has multiple trucks that you’re running every day, that’s quite a bit of extra money that you’re putting in your tanks every day just to run your business,” Oyler said.
While larger trucking companies may be able to buy fuel in bulk for a slight discount, smaller businesses often face tighter margins.
“As you can imagine, these costs get built into the contracts that shippers and receivers are paying for the movement of freight. And eventually someone has to pay for that,” Oyler said.
Despite the challenges posed by rising diesel prices, the trucking industry in York County is expected to grow by 50% over the next 20 years.
“It signifies how strong our economy is; it also signifies how diverse our economy is. But it also signifies how dependent our economy is on freight, on truck traffic. And truck traffic is obviously heavily dependent on diesel pricing,” Schreiber said.