GRAIN VALLEY, Mo. (RFD NEWS) — Fuel prices have moved lower in recent weeks, but diesel remains well above year-ago levels, continuing to pressure transportation costs throughout the agricultural supply chain.
Trader Sam Hudson says recent declines have provided some relief, but energy markets remain uncertain.
“You’ve got to keep an eye on the talks in the Middle East. I think the thing I keep an eye on, though, is a small correction here, even in heating oil or gasoline, historically, is still an elevated price. You’re really going to have to do a lot of work to get board gasoline prices back under 280 decisively.”
Hudson said even a pullback in fuel markets would still leave prices at historically elevated levels.
“I think we’re going to be dealing with this all summer. I think the risk is long-term that this becomes somewhat of a new norm and just continues to drive that inflation wagon into the next marketing year.”
According to AAA, diesel is currently averaging $5.31 per gallon. That is down from $5.44 a week ago and $5.66 a month ago. However, prices remain significantly higher than a year ago, when diesel averaged $3.50 per gallon.
As transportation costs remain a concern for agriculture and freight industries, lawmakers in Washington are advancing a bipartisan surface transportation bill aimed at improving infrastructure, easing supply chain bottlenecks, and addressing challenges facing commercial drivers.
Lewie Pugh with the Owner-Operator Independent Drivers Association (OOIDA) joined us on Monday’s Market Day Report to discuss the legislation and what it could mean for truckers, agriculture, and the broader supply chain.
Pugh said trucking organizations successfully pushed back against several proposed mandates they believed would have increased costs and regulatory burdens for independent drivers and small trucking businesses without delivering meaningful safety benefits.
He also emphasized the importance of industry advocacy groups in ensuring lawmakers hear directly from the professional drivers responsible for moving freight across the country.
One provision receiving significant attention is funding to expand truck parking capacity nationwide. Pugh said the shortage of safe and available parking remains one of the trucking industry’s most persistent challenges, and additional investment could improve both safety and operational efficiency.
The legislation also includes investments in highways, bridges, freight corridors, and other transportation infrastructure critical to moving agricultural commodities from farms and ranches to domestic and international markets.
As the bill advances through Congress, Pugh said the trucking industry will remain engaged in discussions surrounding transportation policy, safety, and supply chain reliability.
