EL PASO, TEXAS (KFOX14/CBS4) — As diesel prices continue to climb in El Paso, trucking companies say the spike is already driving up the cost of moving freight, which could lead to higher prices for groceries and other goods, despite a statewide disaster declaration.
Gov. Greg Abbott declared a statewide disaster over surging diesel prices on Monday, allowing a temporary lift of some restrictions on commercial shipping. Under the 30-day declaration, trucks are now allowed to carry heavier loads and use lower-cost dyed diesel to help alleviate some of the cost for consumers, as diesel fuel is often used in farming and commercial shipping.
Mesilla Valley Transportation, a local trucking company, said that while the declaration may reduce the number of trips needed to move freight, it does not solve the high price at the pump.
Speaking to KFOX14/CBS4 on Wednesday, Mesilla Valley Transportation President and CEO Roya Jones said the cost of moving freight nationwide has surged because of fuel prices, adding that the company is paying about $4 million more a month in fuel here in the borderland.
“The cost of moving freight all over the nation is super higher. Well, the fuel cost is so high. Gosh, it’s gone up. We actually purchase around 2 million gallons a month. So the fact that it’s up at $6 instead of four, our fuel costs are about $4 million a month higher than it was, say, six months ago,” Jones said.
Jones said that while the high prices are being seen at the pump right now, consumers may start to see those costs eventually move through the supply chain, leading to higher prices for groceries because almost everything sold in stores arrives by truck.
To help mitigate the costs, Jones said fuel surcharges help cover some of the increase, but warned that those payments can take weeks to catch up.
Jones said smaller carriers without fuel surcharges are being hit hardest, with some forced to operate at a loss.
“It’s the products that don’t have or the people that don’t have a surcharge that really get killed right now. And that’s just your everyday delivery guys. I mean, those are ambulances. Ambulances are running diesel. They sit around on my little time. They’re waiting around. They can’t get fuel to charge. I mean, just everything we do is just costing more because fuel is,” Jones said.
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