SPRINGFIELD, Ill. (RFD-TV) — Rising diesel prices are putting pressure on the trucking industry, with higher transportation costs expected to affect farmers and consumers.
Matt Wells with the Mid-West Truckers Association says rising fuel expenses will eventually work their way through the supply chain.
“Eventually what’s going to happen is it’s going to trickle down to the consumer and the final bill payer. In the ag world, that’s going to be the farmer, and it’s going to be a painful situation when you raise a fundamental price like this. I don’t think we’re going to see fuel prices drop any, very rapidly anytime soon, just because that refining and reserve capacity has to be built back up even after refineries come back online and are able to do some things.”
Higher fuel costs are also affecting rail transportation.
USDA’s latest Grain Transportation Report shows Class I railroad fuel surcharges have climbed 231 percent above April levels following a sharp increase in diesel prices earlier this year.
Economists say surcharges vary by rail line, ranging from 61 cents to more than a dollar per mile.
Federal energy groups expect retail diesel prices to fall to $4.50 per gallon sometime next year, though transportation costs remain elevated.
