Let's see the average truck holds 200 gals of diesel. If the price on diesel goes from $3/gal to $4/gal that's an extra $200 per load. If the load is 40,000 lbs that's an extra .5 cents per pound.
It's not the price of diesel it's everything else that's causing it to rise. Mostly, though, it's speculation that this administration is doing NOTHING to improve business climate in the U.S. - which is true.
The price is rising because the U.S.'s policies which make us vulnerable to foreign markets and control. All because this asshole in the WH is a racist, bigoted, marxist, socialist hell bent on taking over the U.S.
With all due respect, you’re missing the price of diesel in every step in the manufacturing chain. The $200/load is assuming it’s one load of 200 gallons of gas the entire life of the good. If it’s a crop, it must use a tractor, be shipped somewhere to be processed, be shipped somewhere to be distributed to be made into something, must be distributed to a warhouse, and then distributed to for just in time delivery. Add to that a lot of other factors, such as that same process for packaging added in at the last steps. An additional factor is gas for purchasers. Gone are the days for many to just “run to the store to pick up _____” for me that’s a $5-$7 trip in fuel (depending on the store), up from the $3-$5 just a year or 2 ago. Not that I mind, I just don’t run to the store. But I am just trying to note that you’re missing MANY steps that require one to add the cost of energy in at various stages. Food for thought.
Thanks for the math. I seldom bother with details these days, and sometimes I should. I worked for a couple of years managing a warehouse for the state of Texas. Part of my job was purchasing hundreds of thousands of gallons of diesel fuel. This was during the time when Carter’s bad policies caused fuel prices to soar, and it made my life miserable, trying to juggle the books, and take money from other budgets to keep the diesel coming. I can’t help but imagine large corporate farms are in the same boat, and those expenses get passed on. Smaller farms get hurt the worst, because they don’t always have the resources to handle it. Truckers have to either park their trucks because the rates don’t cover the fuel, or the rates have to increase to keep them on the road. We saw this during the last big fuel bubble. Anyhow, I suspect the cost per pound of produce is increased far more than .5 cents. Of course, you are correct. Fuel prices going up also mean the value of the dollar is going down, and that translates into higher prices at the grocery store, where real inflation for ordinary people should be measured.
You are right, but we've got to add to this list one half of Americans that like socialism and voted in all those Dem representatives. Let's see the average truck holds 200 gals of diesel. If the price on diesel goes from $3/gal to $4/gal that's an extra $200 per load. If the load is 40,000 lbs that's an extra .5 cents per pound.
This calculation erroneously assumes that only one tank of gas is spent on hauling goods. Just think of a run from California to Boston. How many 200gl tanks will the truck consume?
Well, not exactly;
you need to add the fuel used in farming, fuel used to move food to processors, fuel used to power the grid, then add transport costs to that.
Its a price increase at every stage of production not just transport.
Nice analysis though, good first step on how to nail this down.