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US Diesel Prices Exceed $6 a Gallon, Straining Logging Industry
Confirmed
In Short: Diesel prices in the US have surpassed $6 per gallon, significantly impacting the logging industry, according to the American Loggers Council.
US diesel prices have reached over $6 per gallon, according to the Energy Information Administration (EIA), putting additional strain on industries that rely heavily on diesel fuel, such as logging. Distillate inventories are now 13% below the five-year average, contributing to the rise in prices.
Scott Dane, Executive Director of the American Loggers Council, joined FOX Business' Stuart Varney on 'Varney & Co.' to discuss the impact of soaring diesel costs on the timber industry. He highlighted that rising fuel expenses are eroding profitability for businesses that depend on diesel for their operations.
Dane noted that the industry's reliance on diesel makes the current price surge particularly challenging to manage, citing the increased cost of filling logging trucks and the growing share of operating expenses allocated to fuel. He also pointed out that loggers are not seeing an increase in pay, with prices remaining flat for the past decade.
The American Loggers Council has raised the issue with the administration, calling for measures to ease diesel costs, including suspending the federal diesel fuel tax and halting diesel exports, to help mitigate the strain on the logging industry.
What's confirmed
- US diesel prices have reached over $6 per gallon, according to the Energy Information Administration (EIA), putting additional strain on industries that rely heavily on diesel fuel, such as logging. Distillate inventories are now 13% below the five-year average, contributing to the rise in prices.
- Scott Dane, Executive Director of the American Loggers Council, joined FOX Business' Stuart Varney on 'Varney & Co.' to discuss the impact of soaring diesel costs on the timber industry. He highlighted that rising fuel expenses are eroding profitability for businesses that depend on diesel for their operations.
- Dane noted that the industry's reliance on diesel makes the current price surge particularly challenging to manage, citing the increased cost of filling logging trucks and the growing share of operating expenses allocated to fuel. He also pointed out that loggers are not seeing an increase in pay, with prices remaining flat for the past decade.
- The American Loggers Council has raised the issue with the administration, calling for measures to ease diesel costs, including suspending the federal diesel fuel tax and halting diesel exports, to help mitigate the strain on the logging industry.
What's still developing
- The most recent figures showed that average daily gasoline production fell to 9.3 million barrels.
- "On our end, prices have remained flat. We're getting paid no more today than we were getting paid 10 years ago, roughly speaking," Dane said.