Diesel Drains The Field
Rising fuel prices, driven in part by the ongoing crisis in the Middle East, are affecting not only car owners but also farmers and the agriculture sector – an untimely issue amid harvest season. Over in Indiana – a major farming powerhouse, particularly for corn and soybeans – the average on-road diesel price reached a record $6.71 per gallon, according to AAA. That’s a tough break given that much of the equipment used during harvest, including combines and tractors, runs on diesel.
FOX59/CBS4 reported that diesel prices at some stations in central Indiana are over $7 per gallon. That’s a huge contrast to the statewide average of $3.79 a year earlier. The increase is also taking a toll on the trucking industry, with truck driver Mike Bender telling the news outlet that the higher costs would eventually be passed down to consumers.
The Tank Gets Pricey
California, unsurprisingly, tops AAA’s list at $8.42 per gallon. California’s taxes, environmental requirements, and supply constraints contribute to its higher fuel prices, potentially giving drivers another reason to consider EVs. The state even offers up to a $3,500 rebate for eligible new EV purchases by first-time EV buyers.
Speaking of EVs, rising gas prices can make all-electric mobility more appealing. A HERE Technologies and SBD Automotive survey found that 56% of drivers reported greater interest in EVs because of high gas prices. If the situation doesn’t improve, more trucking businesses may consider all-electric workhorses to keep costs in check, with an Electrek analysis estimating that a Tesla Semi could save fleets up to $404,000 over 10 years versus a comparable diesel truck.
Patrick T. Fallon / AFP via Getty Images)
Fill Up or Hold Out?
For now, considering the high diesel prices, Donnie Lawson, co-owner of Lawson Land and Cattle Company, said, “To me, it doesn’t make sense to go buy a whole bunch of fuel at $7 a gallon.” He also believes prices could reach $8 per gallon in the coming weeks.
Indiana’s high diesel average contrasts with its average regular gas price of $4.03 per gallon, among the lowest in the U.S., alongside states like Texas ($3.95), Mississippi ($3.97), and Louisiana ($4.01).
However, the Hoosier State’s diesel average is among the highest in the U.S. Lawson said that such high fuel prices are affecting not only the agriculture sector but also the entire country: “It affects every person in the United States because we supply the food.”
