Rising diesel prices squeeze Central Valley farmers and trucking operators
FRESNO COUNTY, Calif. (KFSN) -- Greg Markarian, who harvests cherries, citrus and almonds and operates an agricultural trucking business, relies on diesel to power both his farm equipment and his trucks. He said rising diesel prices have left farmers searching for answers.
"It's really bad timing. It seems like the price it went up overnight," Markarian said.
Markarian says record diesel prices are driving up costs and putting pressure on California farmers during harvest season.
"I get calls from them all day. What are we going to do? What are we going to do? What can we do? We just got to weather it out," he said.
While gasoline prices have risen $1.17 compared with a year ago, diesel prices have increased by $2.53.
Markarian said the higher diesel costs have hurt his bottom line and forced him to increase his shipping rates by 10%.
"Probably doesn't make up for what we're having to pay, but anyway it's something," he said.
Markarian estimated he has spent about $300,000 on diesel so far this year.
"The higher prices at least have cost me 75 to hundred thousand more," he said.
We stopped at a gas station near McCall Avenue and Highway 180, where diesel prices were significantly higher than the national average.
The nationwide average has spiked to a record high of over $6.20, but at the valley gas station, the price is almost two dollars higher, sitting at $7.89.
Rather than fueling at local gas stations, Markarian said he purchases diesel by the truckload, spending close to $50,000 every eight to 10 days. He said he looks for lower-cost fuel options when possible.
"We're buying cheaper diesel or buying blends. Anyway we can save money and not have the equipment hurt by it," Markarian said.
Diesel is used throughout the supply chain, moving fertilizer to farms, crops to packers and food to grocery stores. Freight trains also run on diesel. As costs rise, Markarian said the impact extends well beyond the farm.
"It drives up the price of everything, fertilizer. Anything that's being moved by truck getting the product to market. It all costs more," he said.
Diesel prices are now about 60% higher than they were before the U.S. and Israel launched their war against Iran in late February.
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