Diesel is expecting to drop. In many states, it already has. With the new drop- n price comes a weight lifted from the industries shoulders – if only temporary.
The COVID-19 pandemic continues to affect all corners of the American industry. With many businesses closing, airlines on the ground, and travel limited, big oil is having a hard time.
The concept of supply and demand is the reason why this is happening. With little-to-no travel for both airlines and regular commuters, a backup of oil with no buyers means gas prices are low. The same issues aren’t for diesel.
Diesel Sales Come From Trucking
With the majority of diesel oil sales in the US coming from the trucking industry, it stayed the same. Albeit – they went down slightly. Well now that the trucking industry is in a downturn (once again) the demand is low, but the production has stayed in post-deficit numbers.
This is where the price is dropping. For many truck drivers who are still currently on the roads, a nice reduction in fuel costs will help save them money as they work to bring products across the country.
The lower fuel costs will help drivers save money while many who are on the road face higher freight wages.
While this drop in price might not last as long as standard oil, the results mean that truck drivers can come home with a little extra in their pockets.
While the country attempts to bounce back from the pandemic, a sign for a better time for truck drivers is slowly approaching. Many drivers have faced some of the toughest working conditions alongside nurses and doctors, the price of high-freight wages has dealt another blow to an already exhausting industry.
Well now that these prices have come down a bit, the sting is feeling a little easier. We hope Raleigh truckers can keep our supply chains moving smoothly!