Diesel Prices Tighten Transportation Industry

The national average price for on-highway diesel fuel has risen 26 percent over the summer, from $2.26 per gallon on May 2 to $2.84 as of Sept. 12, according to the U.S. Department of Energy’s Energy Information Administration. That’s a 52 percent jump since September 2004, when diesel was selling for $1.87 per gallon.

The current upswing is largely due to a spike in prices since Hurricane Katrina struck the Gulf Coast on Aug. 29. Before the hurricane, the average on-highway diesel price was $2.59.

With high diesel prices, transportation companies say they pass the costs along to customers. Dennis Tune, owner of Tune Concrete Co. of Fayetteville, said his company implemented a fuel surcharge per cubic yard of delivered materials.

Tune’s surcharge varies depending on the price of diesel fuel. If the price of diesel drops below $1.70 again, Tune said he will eliminate the fuel surcharge.

Tune has 80 vehicles, including 45 ready mix trucks. His fleet uses 10,000 gallons of fuel per week, costing his company about $25,900 per week. The trucks travel about 50,000 to 60,000 miles per week, he said, averaging about four miles to a gallon.