Breaking Points: Diesel at Record Highs Sparks Truckers’ and Farmers’ Crisis

SPEAKER_1 (0:01)

We need to talk about diesel prices, because when diesel hits $6.50 a gallon for the first time in American history, this stops being abstract. This is crushing real businesses right now. And it's hitting everywhere at once. I've been looking at this compilation from More Perfect Union, and the stories from truckers are devastating. One driver said fueling his vehicle now costs nearly a thousand dollars, leaving him almost nothing to live on.

A thousand dollars just to fill up. And another driver in that piece said he might have to quit if prices keep rising. In Fort Collins, Colorado, owner-operators with 200-gallon tanks are paying around $1,200 per fill-up. When your overhead is that high, profit becomes almost impossible. Right, because these are owner-operators paying out of pocket. But here's what concerns me even more: farmers are getting hit from multiple directions simultaneously. It's not just diesel. Exactly. They're dealing with tariffs, fertilizer costs, rising interest rates, and poor weather reducing yields. For smaller operators especially, there's just no cushion when input costs surge like this. And we should stress this isn't just about what individual drivers and farmers pay at the pump. Diesel is the backbone fuel for our entire supply chain. The nationwide average is $6.51, but California is averaging $8.42.

That California number is staggering. What's driving this beyond just demand?

Refinery capacity is stretched to its limit, and the war in Ukraine is still disrupting global energy markets. Aviation is feeling it too. Jet fuel is approaching $200 a barrel, and cross-country airfare has climbed above $1,000.

Which brings us to the policy question. Senator Chuck Grassley has suggested an embargo on diesel exports to force domestic prices lower. What do you make of that? It sounds appealing on the surface, but it could be disastrous for the global economy. The U.S. is essentially the refiner of last resort for many allies in Asia. And remember, we haven't built a new oil refinery since the 1970s.

Existing facilities are already running near capacity.

So a short-term political fix could create much bigger long-term damage? Exactly. And we're already seeing consequences ripple through the economy. Shipping costs are rising, and some stores are rationing goods like motor oil. This is being described as a fuel crisis, not just a normal oil crisis, and that distinction matters.