Rising diesel prices strain Central Valley farmers and truckers

FRESNO COUNTY, Calif. (KFSN) -- Rising diesel prices are putting financial pressure on farmers and truck drivers in California's Central Valley, forcing some to adjust operations and add surcharges in an effort to keep up with costs.

Greg Markarian, a Fresno County farmer who grows citrus, almonds and cherries, also runs an agricultural trucking business that transports commodities throughout the region.

He said the increase in diesel prices have sharply raised operating expenses.

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"We're charging twice as much, to make half as much," Markarian said.

Diesel fuel is essential to his operation, powering seven tractors and 12 trucks. He said his monthly diesel costs have climbed significantly.

"For a month it's probably about $50,000. What would it be before the war? Probably would have been about $30,000 so $20,000 a month, hard to recoup," he said.

Markarian said he has added surcharges to offset the rising costs, but they have not been enough to keep pace with expenses.

"You know 10, 15% surcharge is not going to cut it, but what are we going to do?" he said.

According to GasBuddy, the national average price of diesel is $5.62 per gallon, while in California it is closer to $7.50 per gallon, higher than in states such as Hawaii and Washington.

AAA reports Merced hit a new record price Friday with $7.67 a gallon; that's just under the state record reached in April.

At a gas station in Madera County along Highway 99, a major transportation corridor in California, truck drivers said fuel prices in the state are significantly higher than elsewhere.

"$7.49 ... It's too much," said Gurwinder Singh, a truck driver from Canada.

Singh said some trucking companies are responding by directing drivers to avoid fueling in California or the more expensive stations whenever possible.

"Our company said do not fill up in California because the price is $7.30. But in other states, most prices are closer to $5.40. It's like a two-dollar difference," he said.

As fuel costs continue to rise, both farmers and truck drivers say the impact is being felt across the industry, with even small price increases making a noticeable difference.

"I worry every day that we're going to go broke. That's why I wake up and try to go out there and work harder," Markarian said.

A Gas Buddy Petroleum expert tells ABC News that with higher transportation costs, consumers can also see an uptick in the cost of everything including food and household goods.

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