Diesel prices are significantly impacting various sectors in the Scranton/Wilkes-Barre/Hazleton area, with averages hitting $6.52, up $2.50 from last year and close to May 2022’s peak. Businesses reliant on diesel, like trucking, agriculture, and construction, are feeling the strain as these costs translate to higher consumer prices.
The price of diesel consists of several components, including crude oil costs, refining, distribution, and taxes. The surge in prices has been attributed to geopolitical tensions, reduced global refining capacity, and supply chain disruptions. Analysts note that Russia’s ban on diesel exports since July has particularly strained supply.
Local entrepreneurs, like Logan Brace from Brace’s Orchard, express frustration over rising operational costs, while construction firms report stagnant project interest. Patrick De Haan from GasBuddy underscores that the combination of high oil prices and reduced supply is creating a crisis for diesel availability.
Companies like Road Scholar Transport have had to rethink pricing strategies, including charging for reefer fuel in refrigerated transport due to skyrocketing operational costs. Overall, a cautious outlook prevails as industry leaders anticipate continued high prices and the ongoing economic impact on businesses.
