Soaring Price of Diesle is Idling More Big Rigs
Vicki Vaughan - Express-News Business Writer
"Basically, I'm going broke," Godard said. "Fuel prices have pretty much run me out of business. I used to enjoy driving, but when a run pays a grand and you pay $700 for diesel, you've only made $300 on that run and one tire can cost $400.
"I lost more money last year than I ever did," he said.
Godard and fellow owner-operators have been slammed by diesel fuel prices that reached record highs in many parts of the country on Friday. In San Antonio, diesel fuel soared to a new high of $3.64 a gallon, up 44 percent in a year's time, according to AAA.
The picture is much the same in the rest of the nation, with diesel prices setting records in many cities. California's per-gallon average for diesel is closing in on $4 and prices in the upper Midwest are nearing $3.80 a gallon.
Diesel fuel historically has been less expensive than gasoline, but no more. Diesel prices are soaring for the same reasons the cost of gasoline is way up: the cost of crude oil — which traded above a record $106 a barrel Friday — and growing demand.
"Globally, especially in Europe, diesel is the transportation fuel of choice," said Ted Harper, an energy analyst with Frost Bank in Houston. In addition, diesel is a distillate, as is heating oil, which is in demand in wintertime. "In wintertime, distillates go up in price and diesel goes along with the rest," Harper said.
(Associated Press file photo)
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