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Truckers paid $10 billion more for diesel in ‘04
By Andy Duncan
The trucking industry paid $62 billion for diesel fuel in 2004, which was $10 billion more than in 2003, according to the American Trucking Associations.
The industry group made its calculation assuming the same level of fuel consumption as in 2003, or 34.6 billion gallons. The actual level of consumption in 2004, given increased freight demand, likely was much higher, so the final fuel bill for the year probably will be even worse than $62 billion.
The real culprit, of course, was higher diesel prices. The national average price of diesel in 2004 was $1.81 per gallon, 20 percent higher than in 2003.
Before 2004, the record weekly average price for a gallon of diesel, as tracked by the U.S. Department of Energy, was $1.77 in March 2003. That record was eclipsed in 2004, when the average per-gallon price passed $2 for 11 straight weeks, peaking at $2.21 in October.
“Trucking’s fuel bill is staggering but not entirely unexpected, given domestic and international factors,” said Bill Graves, ATA president and CEO.
Truckers were hurt not just by the high prices but also by their unpredictability, said Bob Costello, ATA chief economist. “Price volatility increased significantly during 2004, making it more and more difficult for companies to manage this huge cost.”
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