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NewsMarch 6, 2000

The monstrous tractor-trailer rig pulled off the interstate and into one of the giant gasoline centers which provide food, office space and bedding for drivers and diesel fuel for the rig. The driver already knew what to expect. Another $400 refill...

The monstrous tractor-trailer rig pulled off the interstate and into one of the giant gasoline centers which provide food, office space and bedding for drivers and diesel fuel for the rig.

The driver already knew what to expect.

Another $400 refill.

The good old days of a year ago, when fuel was running about a buck a gallon, are gone. Prices across the nation are running $1.39 to more than $2 a gallon.

Suddenly, the continuing fuel price increases which had started at the turn of the century were becoming a threat to the trucking industry, soon to be joined by thousands of farmers who will be taking tractors into the fields as soon as weather permits.

"It will certainly be more expensive for farmers this year," said Terry Birk, of the U.S. Department of Agriculture Farm Service Agency office in Jackson. "And farmers will be getting into the field as soon as weather permits now."

"I have a John Deere diesel that burns about seven gallons of fuel an hour," said Birk.

That translates into more than $10 an hour, up from about $7 an hour during the same time a year ago. Running 10 to 12 hours a day will result in $25 to $30 a day more.

It's not much better for gas-powered tractors.

Depending on the size, these tractors will burn 35 to 40 gallons a day, at current prices of more than $1.50 a gallon.

USDA officials are estimating that agriculture costs could go up as much as a billion dollars due to higher fuel costs.

Congresswoman Jo Ann Emerson's office is hearing the complaints from truckers, farmers and motorists.

"We've had many calls," said a spokesperson from the Emerson office here.

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The callers are seeking Emerson's help for some corrective measures. Some are asking release of fuel from the Strategic Petroleum Reserve of the U.S. Others are seeking congressional help in asking OPEC nations to increase oil production.

Walter B. McCormick Jr., president & CEO of the American Trucking Association, appeared before the U.S. Senate Committee of Energy and Natural Resources recently to discuss what he called "A Crisis at the Pumps."

Skyrocketing diesel fuel prices is not only a crisis to the nation's trucking industry, but to the United States economy, said McCormick. "The increase in fuel prices affects everyone sooner or later," he said.

The international oil community is speculating that key world oil producers may increase oil production in April, which would ease oil prices and therefore gasoline prices, but for now, gasoline prices will probably hover around their current levels or rise even higher.

Before now, the highest average price for a gallon of gasoline in the nation was $1.46 in 1990.

Despite this record high level for gasoline prices, consumption has not decreased. Ditto for diesel.

The national average retail diesel fuel price is about $1.46 a gallon, the second highest price since the Department of Energy began collecting price data. The price is up more than 50 percent from a year ago.

High crude oil prices and a strong demand have combined to drive the national average price of gasoline and diesel up.

Gasoline prices, which area now averaging about $1.50 a gallon regular unleaded are at their highest price ever.

Despite the record high level of prices, consumption has not decreased.

In addition to truckers, business men with pickups, vans and cars are feeling the pinch of the pumps.

The average person will fill up their car at least once a week. With gas prices rising more than 20 cents a gallon over the past month, it is costing the average motorist about $4 more. Not bad, but it translates into more than $200 a year.

Truckers could be reduced in the near future, said one local trucking firm official here.

The increase in fuel during the new millennium will take its toll on a lot of truckers. Trucking accounts for roughly 77 percent of all domestic freight revenues.

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