Editor’s Commentary: Truckers, loaders, and machine operators have been taken for granted. Their efforts are absolutely crucial to our economic infrastructure and supply chain stability. Even incremental shortages of labor or equipment can cause massive chain reactions, which we’ve seen playing out as the supply chain crisis of 2021-22.
It’s about to get worse. Much worse. Diesel drives more than just the trucks. It’s the fuel that powers much of the equipment without our supply chain as well, and its cost is skyrocketing much faster than unleaded gasoline. No other component of the American economy has a more direct effect on the prices of literally every physical good transported anywhere in the nation than the trucking industry.
The cost of diesel doesn’t just affect how much it costs to transport goods and thereby the prices of those goods themselves. It also contributes to decision-making on what to transport where. For example, an east coast company may decide it’s simply not cost-effective to ship their goods to the west coast if diesel prices continue to rise. That could cost jobs on top of lost revenues.
What makes it all worse is that nobody in media, corporate or otherwise, is really talking about this. The handful of independent journalists who are ringing the alarm bell aren’t getting nearly enough traction to make enough Americans aware. We desperately need lawmakers contacted so we can talk some sense into them regarding what’s coming down the pike.
The article below by Mary Villareal from Natural News details why we should be extremely concerned about the state of diesel prices and how it will generate a massive economic domino effect if we do not get things turned around immediately…
No Signs of Slowing Down: Diesel Price Jumps 42.8% From Beginning of the Year, Way Ahead of Gasoline’s 25% Increase
The increase in diesel price has raced past that of gasoline. Data from the Department of Energy‘s Energy Information Administration (EIA) showed that diesel price has jumped a staggering 42.8 percent while the price of gasoline has increased 25 percent from the beginning of the year.
Given the enormous role of Russia as a supplier of diesel, it is easy to blame the ongoing war between Russia and Ukraine for the soaring prices. However, the increase in the price of diesel compared to crude and gasoline began even before the war started.
The price that truckers and motorists pay at the pump is determined by the price of crude. But if the relationship between crude and diesel goes through structural changes that tack on another 10 to 15 cents a gallon to the spread, those gains are going to impact the retail price of diesel even if crude price remains unchanged.
The spread of the prices was just under 40 cents per gallon a year ago but has now increased to up to $1.20. The spread crossed the $1 per gallon mark on March 18 of this year after starting the year at only 27 cents.
But the retail price is already at the end of a long supply chain that includes oil production, the selection of the types of crudes for a refinery to process, and the split output that includes gasoline, diesel, jet fuel, and other products. The growth in the gasoline-to-retail spread is ultimately the final step after changes in the spot products market. (Related: Germany, Austria move closer to rationing gas supplies.)
Diesel prices driving up costs of goods
As consumers notice the spiking gasoline prices, energy industry analysts say the current spike in diesel prices is historic in the sense that it is pushing up costs of goods. Now hovering at all-time highs, diesel prices are being forced upward by the same circumstance that fueled gasoline’s rise.
Patrick De Haan, head of petroleum analysis for GasBuddy, said the price of fuel is the bigger headline as nearly everything people buy is at some point freighted in a vehicle powered by a diesel engine, including ships and barges, trains, trucks and even some airplanes.
This massive increase is hitting consumers hard, including truckers who spend nearly twice the amount for fuel per week. Freight industry analysts also suspect that the very fragmented and volatile trucking industry will likely experience another severe recession, with others going as far as calling it a bloodbath.
“We see when fuel surges as much as it has over the past couple of months, that’s usually when we see a lot of trucking bankruptcies follow,” said Craig Fuller, founder and CEO of industry tracker Freightwaves.
This is bad news for the nearly two million trucking companies in the United States, the vast majority of which are smaller businesses with just a handful of trucks. (Related: Newsom wants to spend $11 billion to give Californians $400 gas cards, throwing more incendiary money into an already inflationary economy.)
“These small operators that live essentially on the cash flow of their trucking operations are not prepared and don’t have the balance sheets or the cash position to absorb these instantaneous shocks to their cash flow,” he said.
Follow Bubble.news for more information about the rising oil and gas prices.
Watch the video below to learn more about why oil prices are getting so high.
This video is from the channel The Morgan Report on Brighteon.com.
More related stories:
- Cataclysmic scenario for trucking and food industries: As America’s descent into the abyss nears completion, expect skyrocketing crime and chaos as we’re pushed towards tragedy.
- DIESEL DEMOLITION: As early as April, diesel could be rationed in the U.K. as authorities phase out Russian oil imports.
- Senator Roger Marshall predicts a “worldwide famine” in 1-2 years, as fertilizer and fuel prices skyrocket.
- Alkaline fuel cells provide US utilities with resilient backup power to resolve frequent shutdowns and blackouts.
- COLLAPSE ACCELERATING: World’s biggest energy traders warn that “gas stations will run dry” of diesel.
Will America-First News Outlets Make it to 2023?
Things are looking grim for conservative and populist news sites.
There’s something happening behind the scenes at several popular conservative news outlets. 2021 was bad, but 2022 is proving to be disastrous for news sites that aren’t “playing ball” with the corporate media narrative. It’s being said that advertisers are cracking down, forcing some of the biggest ad networks like Google and Yahoo to pull their inventory from conservative outlets. This has had two major effects. First, it has cooled most conservative outlets from discussing “taboo” topics like Pandemic Panic Theater, voter fraud, or The Great Reset. Second, it has isolated those ad networks that aren’t playing ball.
Certain topics are anathema for most ad networks. Speaking out against vaccines or vaccine mandates is a certain path to being demonetized. Highlighting voter fraud in the 2020 and future elections is another instant advertising death penalty. Throw in truthful stories about climate change hysteria, Critical Race Theory, and the border crisis and it’s easy to understand how difficult it is for America-First news outlets to spread the facts, share conservative opinions, and still pay the bills.
Without naming names, I have been told of several news outlets who have been forced to either consolidate with larger organizations or who have backed down on covering certain topics out of fear of being “canceled” by the ad networks. I get it. This is a business for many of us and it’s not very profitable. Those of us who do this for a living are often barely squeaking by, so loss of additional revenue can often mean being forced to make cuts. That means not being able to cover the topics properly. Its a Catch-22: Tell the truth and lose the money necessary to keep telling the truth, or avoid the truth and make enough money to survive. Those who have chosen survival simply aren’t able to spread the truth properly.
We will never avoid the truth. The Lord will provide if it is His will. Our job is simply to share the facts, spread the Gospel, and educate as many Americans as possible while exposing the forces of evil.
To those who have the means, we ask that you please donate. We have options available now, but there is no telling when those options will cancel us. We just launched a new GiveSendGo page. We also have our GivingFuel page. There have been many who have been canceled by PayPal, but for now it’s still an option. Your generosity is what keeps these sites running and allows us to get the truth to the masses. We’ve had great success in growing but we know we can do more with your assistance.
Thank you, and God Bless!
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JD Rucker – EIC