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Thursday, Mar 28, 2024
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Editorial—Soaring diesel prices are no classical gas

California’s truck drivers are feeling the sting of high energy prices more so than colleagues from neighboring states.

So what are their options? There aren’t many on the horizon. One solution , the importation of out-of-state diesel fuel to ease soaring prices , was rejected by Gov. Gray Davis. Beyond that, no concrete ideas have materialized.

Meanwhile, the state’s trucking industry suffers. Though lobbying groups like the California Truckers Association are notorious for making mountains out of molehills, this time the CTA’s warning that the industry teeters on the brink of financial disaster must be taken seriously.

Late last month, the American Automobile Association reported diesel was selling in California for $2.02 per gallon, compared to $1.81 per gallon last month and $1.54 per gallon last year. San Diego’s price is at $2.02 per gallon, while in Los Angeles it’s $2 and $2.09 in San Francisco.

The CTA noted it’s far cheaper in bordering states. Diesel is selling for $1.60 in Arizona; $1.85 in Nevada; and $1.82 in Oregon. Certainly no bargain, but substantially cheaper than in California.

Naturally, the state’s truck drivers are complaining it’s difficult to compete. And they’re right. Trucking is a cutthroat business, as violent strikes in the past have proven. Shippers select carriers first by price, then by service.

Though the out-of-state fuel meets federally approved standards, a Davis spokesman argued the current supply and prices wouldn’t see much change by bending the state’s stringent environmental rules. Davis is probably correct, but the fact is even though there may be ample supplies, prices continue to soar.

There is the possibility of cutting fuel taxes, much like French officials did when the nation was paralyzed last month by demonstrating truck drivers. Such a move here could provide some relief in the short term, but it’s unlikely such a drastic action will drive down prices in the long run. If anything, OPEC may conclude that gas-guzzling nations like the U.S. and France will panic and cut taxes before applying pressure on them to reduce prices.

Though the state appears to have at least temporarily fended off the energy-price crisis, they will be hard-pressed to ease fuel costs for both consumers and the trucking industry. The nation is already bracing for expected price increases for heating oil.

By all indications, this could prove to be a long, cold winter for consumers and truckers alike.

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