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Higher diesel prices for truckers likely to affect price of goods

Gas prices in California exceeded the highest levels in the country, exceeding the national average at $ 5,009. The situation has become even worse for truck drivers in California who spend thousands of dollars on a weekly basis on fuel. One such truck driver, Frank Davilla, said he was taking money from his pension and cutting down on lunch to help fill his truck. “Jelly – and that’s it. said Davilla. Some independent truck drivers have decided to leave the business altogether. In 2021, the American Truck Association estimated that the shortage of truck drivers reached a record high of just over 80,000 drivers. California’s average diesel’s $ 7,002 / gallon has also exceeded the national average and is the highest in USSanjay Varshney, a professor of economics in Sacramento, said the truck industry is the backbone of the US economy. So as fuel costs rise, so will the transportation of goods as the truck industry shifts the cost of higher diesel prices to the consumer. “High diesel prices basically mean that what you buy in a retail store: drugs without “A prescription from a drugstore, food – no matter what you touch – clothes. Everything is going up in price,” Varshney said. “If you look at the consumer, it’s not just the average household that suffers the most, it’s actually the poorest people,” Varshney said. A Bank of America report found that the most affected by inflation are communities blacks and Latins, rural households and those who do not have a college graduate at home. Low-income families also experience an inflation rate 0.5% higher than high-income families. California leaders are still discussing a gas cut, but Varshney said that short-term plan is not enough. “A few weeks, but after that, the problem remains on the table,” Varshney said.

Gas prices in California exceeded the highest in the country, surpassing the national average at $ 5,009.

The situation has become even worse for truck drivers in California who spend thousands of dollars on a weekly basis on fuel. One such truck driver, Frank Davilla, said he was withdrawing money from his pension and reducing his lunch expenses to help fill his truck.

“When I’m leaving, I’ll be gone for three days. I’m packing peanut butter and jelly sandwiches – and that’s it. I live on peanut butter and jelly sandwiches,” Davilla said.

Some independent truck drivers have decided to leave the business altogether. In 2021, the American Trucking Association estimated that the shortage of truck drivers reached a record high of 80,000 drivers.

California diesel average $ 7,002 / gallon has also exceeded the national average and is the highest in the US

Sanjay Varshney, a professor of economics at Sacramento State, said the truck industry is the backbone of the US economy. Thus, as the cost of fuel increases, so will the transport of goods as the truck industry passes on the cost of higher diesel prices to the consumer.

“High diesel prices basically mean that everything you buy in a retail store: over-the-counter drugs, food – no matter what you touch – clothes. Everything goes up in price,” Varshney said.

Inflation in the US is at its highest level in 40 years, and Varshney says that while every household will feel the impact, certain groups will feel it the most.

“If you look at the consumer, it’s not just the average household that suffers the most, it’s actually the poorest people,” Varshney said.

Due to inflation, they will have to spend most of their money on basic necessities and will limit everything else.

A Bank of America report found that the black and Latino communities, rural households and those without a college graduate at home are most affected by inflation.

Low-income families also experience a 0.5% higher inflation rate despite high-income families.

The leaders of the state of California are are still discussing a gas discountbut Varshney said that short-term plan is not enough.

“A booklet review is not going to help solve the long-term problem. A review will probably take a few days, a few weeks, but after that, the problem remains on the table,” Varshney said.

Higher diesel prices for truckers likely to affect price of goods Source link Higher diesel prices for truckers likely to affect price of goods

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