AUSTIN, Texas — Diesel prices climbed to another all-time high this morning, pushing up the cost of filling up for drivers and raising concerns about broader impacts on consumer prices.
According to AAA, the average price of diesel in Austin is now about $5.63 a gallon. Statewide, the average is $5.67, and nationally diesel has pushed above $6 a gallon.
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AAA data shows how quickly prices have risen. A year ago, diesel in Austin averaged about $3.24 a gallon. One month ago, it was $4.91.
The jump is translating into significantly higher fill-up costs. A typical short-bed Ford F-250 can hold about 34 gallons. At today’s price, filling it from empty would cost about $190. A year ago, that same fill-up would have cost about $110: roughly $80 more for one tank today.
Truckers say the higher costs are hitting especially hard. “One fill up was over $1,000… If you’re an owner-operator, that’s affecting what you’re paying yourself. Like, that’s directly affecting your bottom dollar,” said Daniel Wood, an Arizona truck driver.
Experts say those costs don’t necessarily stop with the driver. Diesel is used to move everything from groceries to packages, so higher transportation costs can eventually show up in what consumers pay. The national diesel price is up more than $2 from this time last year.
Experts say part of what drivers see at the pump is tied to how stations compete on price, while global supply problems are also pushing wholesale fuel costs higher. Patrick De Haan of GasBuddy said stations may cut prices by small amounts to undercut competitors, but that can reverse quickly.
“Even if their cost doesn’t go down, they lower prices a couple of cents every day to have the lower price. When their competition matches that lower price, they go even lower. Unfortunately, at some point, stations start to sell at their cost. That’s when prices suddenly hike back up again,” De Haan said.
Fighting involving the U.S. and Iran has disrupted global fuel flows, and crude oil prices have climbed above $100 a barrel again.