ATLANTA — Rising diesel prices are putting pressure on Georgia’s trucking industry and could eventually lead to higher prices for consumers.
The average price of diesel in Georgia is now more than $5 a gallon, up nearly $1.50 from a year ago.
Seth Millican with the Georgia Trucking Association said the higher prices are creating challenges for trucking companies, particularly smaller operations.
“Costs are definitely up, and so it’s forcing folks to get pretty creative in how they’re able to continue to deliver that service,” Millican said.
He said the average fill-up for a truck driver can now cost about $500 more than it did a year ago.
“They do have to make payrolls, they do have to keep the doors open, they do have to pay their insurance premiums, they do have to buy fuel. And so as those costs go up, that’s ultimately going to impact the supply chain and the costs to deliver those goods are going to go up,” Millican said.
Millican said Georgia has more than 71,000 registered trucks, and 76% of the state’s communities depend entirely on trucking to receive the goods they need.
“When fuel prices go up everybody pays for it,” Millican said.
Federal data shows fruit and vegetable prices are increasing at an annual rate of more than 5%, nearly double the inflation rate for food overall.
Economists say produce is likely to see some of the biggest price changes if diesel prices continue to rise because of its short shelf life.
According to the U.S. Energy Information Administration, the price of crude oil accounts for about $4 of every $10 in the price of diesel fuel.
Recent tensions between the U.S. and Iran, along with Ukrainian attacks on Russian refining operations, have contributed to higher diesel prices.