Diesel costs being passed on to public

The per-gallon price is up almost 44 percent from a year ago.
As motorists continue to watch fuel prices drop, diesel consumers have seen prices rise by nearly half in the past year.

The increased diesel costs translate into trucking companies assessing higher freight charges, which are passed on to suppliers and ultimately to the public, said Chris Wilinski, manager of ABF Freight System Inc. in Cape Girardeau. "It's probably tougher on the customers than it is on us," he said.

According to the U.S. Department of Energy, the average price for diesel in the Midwest is $3.02 per gallon, nearly the same as the national average. The price is up almost 44 percent from a year ago.

"We've seen diesel costs jump tremendously in the last three years," said Brian Davidson, an employee at Jerry Lipps Truck Service in Cape Girardeau. The company runs about 50 trucks that haul general commodities throughout Southeast Missouri.

Davidson said he understood why diesel prices spiked after Hurricane Katrina but can't understand why prices continue to increase.

Mike Wright, spokesman for the American Automobile Association, said the increased diesel prices are due to federal regulations on ultra-low-sulfur diesel.

"Refineries had to expand so that they could produce diesel with less sulfur content, and the availability of the product is not nearly what it was from even a year ago," Wright said.

Because of the short supply, in some parts of the country, like Colorado, Wright said, the purchase of diesel is limited, which can also contribute to higher prices.

For Clarence Callahan, manager of Advance Transport Inc. in Advance, Mo., the increased diesel costs aren't affecting his business. "We've had to implement rate increases, but when 80 percent of all goods are transported by trucks, we've still got business," he said.

Advance Transport runs 16 trucks hauling produce from California and general paper products from New England. Callahan said the company offers an incentive for drivers who use cruise control to improve fuel mileage.

Wright doesn't see diesel prices decreasing but said gasoline costs will continue to go down.

The average cost of fuel in Missouri is almost 20 cents less than the national average of $2.82 per gallon.

Southeast Missouri has some of the lowest gasoline prices in the state. On Wednesday, Jaspers at 10 S. West End Blvd. sold unleaded gasoline at $2.34 per gallon. Several locations in Jackson were charging $2.32 per gallon of