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Almost $7 Diesel Says Trucking Association

Posted at May 2, 2012 » By : » Categories : Blog » 0 Comment

Nearly Diesel $7 for California California clean fuel directives will result in many job losses and will drive diesel prices to an estimated $6.69 per gallon. Consequently, this will put California’s truckers at a serious competitive disadvantage. This news comes from a recent study released by the California Trucking Association (CTA).

The CTA study is called “The Impact of the Low Carbon Fuel Standard & Cap-and-Trade Programs on California Retail Diesel Prices,” and was conducted by Stonebridge Associates, Inc. in Bethesda, Md. The consultant’s study attempts to predict the effects that the new low-carbon Californian initiatives will have on the state’s future diesel prices.

The findings predict that diesel prices will increase by $2.22 per gallon by 2020 from these new initiatives (maybe more from unrelated fuel cost factors). That’s more than a 50% price increase and would result in a whopping $6.69 per gallon.

“These higher California-only diesel costs will create a substantial cost bubble around California where inside the bubble diesel prices will be significantly higher than in the rest of the country,” the study noted.

Read the entire article about this study

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