Record-high diesel fuel prices in Wisconsin are starting to come down from their peak in mid-May, but the transportation industry in the state is still feeling the squeeze.
Wisconsin Motor Carriers Association President Dan Johnson told WPR’s “Wisconsin Today” that diesel accounts for roughly 20 percent to 30 percent costs for trucking companies.
“I don’t know that ‘panic’ would be the right word, but they’re definitely concerned about this,” Johnson said. “We’ve been through this before — about five years ago — when diesel prices spiked near to where they are today, so it’s not our first time through this. But we would definitely like to see some relief sooner rather than later.”
According to GasBuddy petroleum analyst Patrick De Haan, the average diesel price in Wisconsin peaked at $5.88 a gallon on May 13. After Memorial Day, it came down to an average of $5.68 as the oil market projected optimism for U.S. negotiations with Iran.
Diesel prices in the state were below $5 a gallon last month and below $3.50 a year ago, according to AAA fuel price data.
Johnson said larger trucking companies are better able to withstand these higher prices than smaller firms because they can negotiate fuel purchasing programs and other fixed costs.
“If you have three or maybe five trucks, you may not be considered in that same universe for a fleet that could benefit from a fuel surcharge or some sort of negotiated contract,” Johnson said. “So an owner-operator with one truck, he or she is probably going to be paying close to retail price for diesel.”