California’s average diesel price has risen to $8.21 per gallon, according to AAA, putting it well above the national average of $6.26. Prices are higher at some Bay Area locations, including a 76 station in Belmont where diesel was selling for nearly $9 per gallon.
Doug Johnson, a spokesperson for AAA Northern California, said the state has recorded successive highs as instability in global oil markets puts pressure on fuel costs. He pointed to developments involving Iran and the Strait of Hormuz, as well as fighting between Saudi Arabia and Houthi rebels in Yemen.
The increase affects more than drivers at the pump. Diesel is widely used in transportation, and higher fuel expenses can affect trucking, agriculture, construction and supply chains. Those costs may also be passed to consumers through higher prices for everyday goods.
Mark Woods, vice president of Fresno-based trucking company Wildwood Express, said his company’s fuel bill has risen sharply. He said a load that cost about $25,000 to $30,000 three weeks earlier produced a bill of $54,000 last week, despite involving roughly the same amount of fuel.
Woods said the company may need to seek higher payments from customers to continue operating. Drivers often expect fuel prices to decline after Labor Day as demand typically falls, but Johnson said that pattern has not occurred this year.
