Minnesota diesel fuel 13 cents from record high: Costs passed to consumers
Rising gas, diesel prices send ripple effects through economy
Truckers and farmers are feeling the pinch of rising fuel prices. FOX 9's Leon Purvis has the latest report.
Diesel prices are climbing fast in Minnesota, and industry leaders warn just about everyone will feel the impact.
How higher diesel prices hit your wallet
What we know:
The average price of diesel fuel in Minnesota is now $5.44 per gallon, which is about $2 more than the same time last year. For truck drivers, that means it costs $400 more to fill up an 18-wheeler’s 200-gallon tank compared to last year.
The Minnesota Trucking Association says these extra costs are often passed along to vendors, which can eventually mean higher prices for consumers.
"When you think about trucking, what's really important is everything takes multiple trips on a truck. Think this time of year with agriculture, well, you plant seed. It gets hauled on a truck. You bring fertilizer to the seed that's hauled on the truck. Ultimately, you pull that seed out of the ground on a finished product gets hauled on a truck, it goes to a processing plant," said John Hausladen, president of the Minnesota Trucking Association.
Industry leaders say the ripple effect of rising diesel prices touches almost every product that relies on trucking for delivery.
The impact on Minnesota farmers
Why you should care:
While trucking companies can sometimes pass along higher fuel costs, Minnesota farmers say they have less flexibility. Tractors, combines and other farm equipment all run on diesel, and when prices rise, many farmers end up absorbing those costs themselves.
"You're pretty much just going to be putting yourself deeper in the hole in the bottom line. You have a certain amount of acres you got to farm, you know. And you get a lot of people saying, well, why don't you plant something else? But, you know, there's only markets for in Minnesota, the majority of the acres go into corn and soybeans. And right now neither one of them cash flow," said Gary Wertish, president of the Minnesota Farmers Union.
Minnesota’s farm economy relies heavily on corn and soybeans, and current prices make it tough for farmers to break even when fuel costs soar.
Big picture view:
Minnesota is now just 13 cents away from the state’s all-time record high for diesel, which was $5.57 per gallon in June 2022, shortly after Russia invaded Ukraine. With prices nearing that record, both businesses and families could see higher costs for goods and services.