Truckers see no exit from a fuel price "crisis" and expect diesel bills to break records in 2008, the industry's main trade group said Monday.
The American Trucking Associations said current price forecasts show the industry will spend $135 billion on fuel this year, up from $112.6 billion in 2007.
Diesel fuel rose more than a penny overnight to a new record Monday, surpassing a national average of $4 a gallon, up from $2.75 a year ago, according to AAA and the Oil Price Information Service. Meanwhile, light, sweet crude for April delivery fell $3.79 to $106.42 a barrel on the New York Mercantile Exchange in afternoon trading.
The ATA is asking Congress and the Bush administration to address the "crisis situation and move immediately to take steps to increase diesel fuel supply," including increased refining capacity and exploration of Alaska's Arctic National Wildlife Refuge and Outer Continental Shelf.
In the air, rising fuel prices have led to rising ticket prices. Some of the nation's largest airlines, including United and Continental, last week increased their fares by as much as $50 round-trip to help offset surging fuel prices.
Fuel is gaining on labor as the largest expense for motor carriers, said ATA President and Chief Executive Bill Graves. At close to 25 percent of total operating expenses, fuel typically represents the second highest expense.
The cost to fill fuel tanks on a typical tractor trailer has increased 116 percent, or $615, in five years, according to the ATA, whose members include United Parcel Service Inc. and Knight Transportation Inc. Trucks haul 70 percent of all freight and rising fuel costs could raise the cost of their cargo, including food, retail and manufactured goods.
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