Diesel prices soar while gas prices drop

Extreme diesel prices punch economy hard Truckers pay near-record highs

Article Published: 10-15-05

Gasoline prices have dropped back in recent weeks, but the cost of diesel fuel is hovering near a record high in Sioux Falls and across the nation.

"It's been going up, and it doesn't look like it's going to come back down anytime soon," said Bill Rickers, general manager of the Frontier Village truck stop in north Sioux Falls.

The average of diesel fuel climbed to a record $3.19 per gallon in Sioux Falls on Wednesday before settling at $3.13 on Friday. The statewide average on Friday was $3.17 and the national average was $3.18.

Fluctuating gasoline prices get much of the public's attention, but high diesel fuel costs have a more direct economic impact on the nation's economy because the fuel is used the trucks and railroads that transport most of the nation's goods. Farmers who are in the middle of their harvest also are paying record prices.

The increase gets pbutted along throughout the supply chain before eventually reaching the consumer.

"All we can do is increase our rates," said independent trucker Lloyd Bultsma of Sioux Falls. "Fuel is 95 cents higher today than it was in June. We have to pbutt it on."

Bultsma, who runs a fleet of 30 trucks, said his drivers are doing what they can to help.

"We're trying to slow our trucks down to improve fuel mileage. That helps some," he said. "But it still has an effect."

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One reason that diesel prices are rising while gasoline prices are falling is it's easier to import gasoline. Few foreign sources produce the kind of diesel that meets United States environmental standards.