Truckers struggle as California diesel prices top $8 a gallon

LOS ANGELES - "Uuush! Too expensive." That was Jose Mendez’s reaction when asked about the rising cost of diesel. He’s not alone. Truckers across the country say the price of fuel is taking a major bite out of what they earn, and independent drivers say they’re feeling it especially hard.

By the numbers:

The average price of diesel nationwide is now about $6.23 a gallon, while California’s statewide average has climbed above $8 a gallon, a record high, according to AAA.

At a truck stop in Castaic, drivers were paying $8.04 a gallon with credit.

For truckers, the math adds up quickly. Some big rigs can carry well over 100 gallons of diesel. At $8.04 a gallon, filling a 100-gallon tank would cost more than $800.

One driver told us he was paid $2,000 for a load but spent about $1,400 on fuel.

"I spent on fuel was $1,400… nothing saved," he said.

Another driver said he was spending at least $600 on fuel.

What they're saying:

Todd Wells said he doesn't understand how some independent trucking companies are managing to stay afloat.

"I don’t know how some of these independent companies stay in business. It’s ridiculous."

Lynn and Phil Czinder say they know firsthand what those costs can do to a small trucking business. The couple says they owned their own trucking company for about 20 years, but eventually couldn't keep going. They say rising operating costs, including fuel, had them going broke. "We seemed to have been making better money at one point being owner operators," Lynn Czinder said. "But like I said, everything started going downhill."

Phil said he eventually went back to working for someone else. "I owned for 20 years. Now I’m back to working for somebody else."

Oscar Escobar described the current situation in even simpler terms. "No, pues ahorita está pa’ llorar," he said, "Right now, it’s enough to make you cry."

Escobar said some of his fellow independent truckers have stopped working because they can't afford to keep their trucks on the road.

Anthony Jones, another independent trucker, said he recently put $500 into his tank and got about 62 gallons.

He said a year ago, that same $500 would have bought about 20 additional gallons.

"I have no choice but to figure out a way to deal with it, you know, and hold on until the prices go back down."

The backstory:

Diesel prices are affected by several factors, including the cost of crude oil, refining, distribution and taxes. The U.S. Energy Information Administration says crude oil has historically been the largest component of the retail price of diesel.

California's fuel market can also be particularly sensitive to supply disruptions because of the state's fuel requirements and its relatively isolated refining and distribution system.

The recent surge in energy prices has also come amid major disruptions in global oil markets tied to the conflict involving Iran.

Why you should care:

The impact doesn't necessarily end with the trucker. Trucks transport much of what consumers buy every day, from food and household goods to products sold at stores across the country.

Higher fuel costs increase the expense of moving those goods. Some of those additional transportation costs can eventually be passed along to consumers.

So while truckers are feeling the increase first, higher diesel prices could eventually show up in the cost of goods you and I buy.

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