A hike in gas prices will mean a rise in commodity prices
QUINCY, IL —
You may feel the pinch at the pump as gas prices are on the rise.
According to www.gasprices.aaa.com, gas prices have increased nearly 16 cents since last month.
Tractor trailers travel up and down these highways and streets everyday carrying some of our most crucial commodities.
Diesel prices are up 64 cents from last year, rising 13 cents just in the last month.
A local trucking company says that's going to cost customers in the long run.
Many trucking companies like Gully Transportation try to prepare for rise in gas prices by adding a fuel surcharge to the weight of the freight being moved.
"You are not able to recover everything. Most of the customers only want to pay one way. When you are finished unloading somewhere, you end up dead heading back and you are eating the fuel cost on that end.'
A John Wood Community College economic expert says many factors play a role when fuel prices rise.
"From worldwide supply and demand from the change from a winter blend to a summer blend. Tensions in oil producing countries around the world and many, many more. Taxes and so forth."
Gully Transportation's safety director says most of their trucks carry around 300 gallons of fuel at a time and even the newest models only get six to seven miles to the gallon.
"The way the drivers operate the trucks have a big impact on how the fuel usage is too."
Seals says off road fuel is often overlooked in the trucking industry.
"They can use up to 50 gallons like on a normal weekend when you are trying to keep product and things like that refrigerated for delivery on Monday or the first of the week."
Here’s what that means for consumers.
"You are going to end up paying more for the product because the shippers and manufactures have to charge more for getting products and raw materials shipped to them. "
And Tri-State drivers are already paying more at the pump.
In Illinois, the average price of gas is $2.96. Iowan's are paying an average of $2.78 and the cheapest of the Tri-States, drivers can still expect to pay $2.66 a gallon.