In light of Hurricane Katrina and the Energy Information Administration’s latest pricing forecasts, the American Trucking Associations has upped to $85 billion its projection of the amount the industry will spend on diesel fuel in 2005. That’s $23 billion more than the trucking industry spent in 2004.
“These projections highlight the severity of the situation we are now facing,” said ATA President Bill Graves. “Congress needs to ensure that the industry has access to enough fuel at reasonable prices so that motor carriers can continue to deliver America. Steps must be taken to reduce the magnitude of recent price spikes.”
The Energy Information Administration on Wednesday, Sept. 7 significantly increased its estimates for average fuel prices this year and 2006. In its “Short Term Energy Outlook,” EIA projected diesel fuel would average $2.41 per gallon in 2005, up from a previous estimate of $2.29 per gallon. At the same time, EIA projected diesel would average $2.50 per gallon in 2007.
ATA is testifying before a congressional panel today regarding the effects of the surge in diesel prices on the trucking industry.