Gas prices strain trucking companies, leading to layoffs

Yellow Semi Truck Travels On Interstate In Springtime
Posted at 12:49 PM, May 31, 2022
and last updated 2022-05-31 15:49:17-04

(KERO) — While most drivers are feeling the impact of rising gas prices, trucking companies are seeing the worst of it. Triple-A reports diesel fuel is now at an average of $5.53 a gallon with prices much higher in states like California.

CEO Rand Taylor works with trucking companies to help them save money with a fuel additive. He says prices like this are hurting smaller companies the most. In some cases, it’s leading to layoffs.

His organization estimates trucking companies move about 70-percent of the products we buy.

Taylor says this has a big impact when companies already have a small staff. And the cost of gas, paired with supply chain issues could lead to higher prices for all consumers.

"They're going to pass on these costs, you know directly, to the consumer. So, I mean you're going to see costs go up and in everything you know it's already happening, and you know, unfortunately, I don't see any real end in sight for this or at least, at least in the near future."

Taylor says each time the White House has released oil from the reserves, it has helped trucking companies. But only for a short time since most companies in the field are still understaffed.

As of Tuesday, nearly 120,000 jobs in the oil and gas industry have been cut in the last two years.