Gas Prices Hit Highest Level Since 2008
Crude oil prices hit $100 per gallon Wednesday, pushing diesel fuel prices to their highest level since 2008. This will impact trucking companies nationwide.
Many independent owner operators and small trucking companies are getting paid more to move freight, but are bringing home less after fuel. Many drivers pay up to 65% of net revenues towards fuel.
Diesel prices Wednesday averaged $3.58 per gallon nationwide -- up 73 cents per gallon from a year ago -- according to the American Automobile Association, or AAA, Fuel Gauge Report. The highest price per gallon was found in California at $3.90.
Economists have pinpointed continued unrest in the Middle East as a root cause of the price increase. It is uncertain now when stability to the area, and oil prices, will return.
Trucking companies both large and small are impacted by this increased expense. However, small trucking companies and independent owner operators are the most vulnerable to this change. Many small companies may be forced out of the trucking business if prolonged high gas prices persist.
This negative news comes jsut when the trucking industry is beginning to show signs of recovering from the economic recession.