DALLAS - Diesel fuel at a truck stop along Interstate 20 in Dallas on Labor Day reached nearly $6 a gallon. For truck drivers, that means paying nearly $1,000 to fill up the tank. And for consumers, it means higher shipping and food costs.
High fuel prices strain truckers, drivers
What we know:
Diesel fuel prices have climbed 60% over the past seven to eight months. The sharp increase directly impacts truck drivers, who say the high costs eat away at their earnings while shipping rates remain low.
Much of the price increase is attributed to the war with Iran and the blockage in the Strait of Hormuz, a critical waterway for global oil transport.
What they're saying:
Truck drivers expressed frustration over the rising overhead costs required to keep their vehicles on the road.
"That's a bigger issue now with us because that's the support of our work, our jobs," said truck driver Mustafa Moxiesen. "We need diesel, we need oil, everything go high, so that impact too much for truck driver."
Driver Aysha Floyd noted that low shipping rates compound the financial hit.
"It's hard right now, really," Floyd said. "The rates are low, so we're not really making any money. Everything is going into the fuel tank."
Impact on the broader economy
Big picture view:
The price hike affects far more than just truck drivers. Economists emphasize that diesel powers every sector that moves freight across the country, including rail, air, and agriculture.
"Rail freight depends on diesel. The farm sector—think of all the tractors out there that harvest the grain and other crops—they run on diesel," said Bud Weinstein, Ph.D., a retired professor from the SMU Cox School of Business. "The fact that the agriculture sector and the transportation sector are paying a lot more for fuel is clearly inflationary. It's already starting to show up in the Consumer Price Index, and I think we'll see further increases in the months ahead because of these higher energy costs."
President Donald Trump recently met with oil company executives to put downward pressure on the industry to expand capacity. However, experts say relief will not come overnight.
Even if the war ended immediately and the Strait of Hormuz reopened, experts explain there would be no immediate drop in oil prices.
Furthermore, U.S. refineries are already operating at roughly 97 percent capacity. Expanding existing refineries or building new facilities is difficult, largely because communities resist having refineries built near their neighborhoods.
Economists expect it will take time before prices drop significantly.
The Source: The information in this article comes from a broadcast report featuring interviews with truck drivers Mustafa Moxiesen and Aysha Floyd, as well as economic commentary from Bud Weinstein, Ph.D., retired professor at the SMU Cox School of Business.