California's average diesel price reached $8.35 a gallon this week, up more than 60% from a year ago and 32% above the national average of $6.32, according to the American Automobile Assn. Fresno-based owner-operator Jagroop Singh Deol, who has downsized his fleet from five trucks to two, said a full tank that cost $1,000 at the start of the year now runs over $1,600, and he may leave the industry if prices keep rising. Avninder Singh, chief executive of Bakersfield-based Roadies, said monthly fuel costs have jumped to $450,000, wiping out all profit margins, and he now pays $2,400 to fill a tank that cost $1,200 at prewar prices of $4 per gallon. Between August and September, at least 16 freight companies nationwide filed for bankruptcy amid record diesel prices, and small-business truckers make up more than 90% of U.S. trucking companies, according to the Owner-Operator Independent Drivers Assn. The Group of Seven wealthy nations agreed on Oct. 2 to release 100 million barrels of emergency oil reserves over the next four months, while Gov. Gavin Newsom allowed early sales of cheaper winter-blend gasoline and the Trump administration expanded tax-exempt red dye diesel to on-road trucks.
Amazon.com IncG7 releasing 100 million barrels of emergency oil reserves and expanded diesel supply measures pressure distillate/heating oil prices, a negative for heating oil futures.
