Fewer truckers and more expensive diesel, another strong risk for US inflation.
The price of diesel and other fuels could rise again and this would end up hitting the pockets of millions of homes.
Photo: George Frey / Getty Images
Despite the fact that throughout the year the price of diesel and other fuels has increased due largely to the effects of the war between Russia and Ukraine , since the beginning of the summer in the United States the panorama has been seen more complicated for transport companies, since this has forced them to spend a greater amount of money to move more merchandise throughout the country.
In October alone, inflation caused the price of Ultra Low Sulfur Diesel (ULSD) in New York Harbor to average $4,50 dollars per gallon, the highest monthly cost since May.
Added to this is the reduction in fuel refining capacity worldwide, which has been going on for two years and which translates into adjusted gasoline and diesel inventories.
The best example of this occurred last month, when the United States, after averaging 36 days of distillate supply between 2017 Y 2021, in October of this year he announced that he had 33 days supply, whichever is less from 2017.
In turn, from early this year, US fuel oil inventories have been below the previous five-year low.
According to information from the American Automobile Association (AAA), a year ago the price of a gallon of diesel cost an average of $3.100 dollars and now around $5.25 Dollars. However, the companies that provide the freight transportation service directed to the consumer market have mostly assumed a large part of the gradual increase in diesel, something that they may no longer be able to afford towards the end of the year or at the beginning of the year. of 2023.
The cost of diesel roughly 33% higher than it was this time last year , at $5.07 a gallon. Diesel is used in EVERY aspect of our food supply.
The impact of Biden’s anti-energy policies don’t end at the high prices at pump – it’s affecting the cost at the kitchen table as well. pic.twitter.com/nTltswxlZB
— Rep. Jason Smith (@RepJasonSmith) November 25,
To this problem must also be added that the shortage of truckers is harming the entire industry, because in the container storage yards of the ports there are millions of tons of raw materials and merchandise aimed at US consumers who need to move as soon as possible, because if they do not arrive to their final destination they cause shortages, which produces price increases due to the increase in demand with respect to the low supply.
In this way , if the prices of a large part of the goods that reach households increase again, inflation would skyrocket again.
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