Rising diesel prices increase the risk of a recession

28 June, 2022 Tuesday

As the price of diesel remains high, trucking companies are forced to charge higher rates to break even, impacting the price of consumer goods. Truckers who must fill their trucks with diesel now have to spend extra money on their pockets. Some truck drivers claim that their jobs are no longer profitable unless shippers are willing to pay higher fees. Love's Truck Stop at Katy TX sees record sales. Drivers max their credit cards only to fuel. In many parts of the country the price is close to $ 6 a gallon of diesel.
"I recently paid $ 475 - $ 475 for three times as much fuel. Now only one," said George Sanders, a FTL truck driver. He stated that working as a truck driver is almost like a free ride: “After the cost of fuel and pay for the driver, you get nothing. It's like a community project.”
"In the last six months, the price has almost doubled," said Sanders, who owns his trucking company. "I'm the owner, the operator, it all comes out of my pocket." The high price of diesel fuel has recently hit the US economy and "increased the risk of a recession by 2023. Sanders said his profit was small due to the cost of fuel. "Most of the time I used to take extra breaks or go empty-handed, but now you have to stay with it to cover diesel prices," Some truck drivers have said that they need to be diligent about checking for cheap fuel prices in the area before filling their tanks. These higher diesel prices mean that despite the Federal Reserve's initial efforts to curb inflation, in the meantime, inflationary pressures will continue to grow in the economy. Earlier this month, the Federal Reserve announced increase in interest rates, the highest in the last two decades. Inflation rate in the U.S. is at 8.6%, close to the highest level of 40 years.
One of the things we have seen in the United States, especially on the east coast, is that the price of diesel has been steadily declining, indicating that despite all the inflationary pressures, consumers still have a lot to do, many trucks. on the road and goods cannot meet demand. The high price of diesel will lower the cost of everything consumers buy.

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