Price of goods in California likely to increase as truckers pay more in diesel

California gas prices have topped the nation’s highest, surpassing the national average at $5.009.The situation has become particularly worse for California truck drivers spending thousands of dollars on a weekly basis for fuel. One such truck driver, Frank Davilla, said he is taking money out of his pension and cutting back on lunch spending to help fill up his truck.Video Player | Gas Station Manager Accidentally Sets Prices to $0.69 a Gallon, Loses Station Thousands of Dollars”When I leave, I’m gone for three days. I pack sandwiches — peanut butter and jelly — and that’s it. I’ve been living off of peanut butter and jelly sandwiches,” Davilla said.Some independent truck drivers have made the decision to leave the business entirely. In 2021, the American Trucking Association estimated a truck driver shortage to hit a historic high of just over 80,000 drivers.California’s $7.002/gallon diesel average has also surpassed the national average and is the highest in the U.S.Sanjay Varshney, a finance professor at Sacramento State, said the trucking industry is the backbone of the U.S. economy. So as the cost of fuel increases, so will the transportation of goods as the trucking industry passes the cost of higher diesel prices onto the consumer.”High diesel prices basically means that everything you buy in a retail store: medicines over-the-counter from a pharmacy, food — doesn’t matter what you touch — clothes. Everything goes up higher in prices,” Varshney said.Inflation in the U.S. is at its highest in 40 years, and Varshney says that while every household will feel the impact, specific groups will feel it the most.”If you look at the consumer, it’s not just the average household that is getting impacted the most, actually the poorest people,” Varshney said.Due to inflation, they’ll be forced to spend most of their money on basic necessities and will be cutting down on anything else.A Bank of America report found that the most impacted by inflation are Black and Latino communities, rural households and those without a college graduate at home.Low-income families also experience a 0.5% higher inflation rate than high-income families.California state leaders are still discussing a gas rebate, but Varshney said this short-term plan is not enough.”A handout check is not going to help fix the long-term problem. A check will probably last for a few days, for a few weeks, but then after that, the problem is still on the table,” Varshney said.

California gas prices have topped the nation’s highest, surpassing the national average at $5.009.

The situation has become particularly worse for California truck drivers spending thousands of dollars on a weekly basis for fuel. One such truck driver, Frank Davilla, said he is taking money out of his pension and cutting back on lunch spending to help fill up his truck.

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Video Player | Gas Station Manager Accidentally Sets Prices to $0.69 a Gallon, Loses Station Thousands of Dollars

“When I leave, I’m gone for three days. I pack sandwiches — peanut butter and jelly — and that’s it. I’ve been living off of peanut butter and jelly sandwiches,” Davilla said.

Some independent truck drivers have made the decision to leave the business entirely. In 2021, the American Trucking Association estimated a truck driver shortage to hit a historic high of just over 80,000 drivers.

California’s $7.002/gallon diesel average has also surpassed the national average and is the highest in the U.S.

Sanjay Varshney, a finance professor at Sacramento State, said the trucking industry is the backbone of the U.S. economy. So as the cost of fuel increases, so will the transportation of goods as the trucking industry passes the cost of higher diesel prices onto the consumer.

“High diesel prices basically means that everything you buy in a retail store: medicines over-the-counter from a pharmacy, food — doesn’t matter what you touch — clothes. Everything goes up higher in prices,” Varshney said.

Inflation in the U.S. is at its highest in 40 years, and Varshney says that while every household will feel the impact, specific groups will feel it the most.

“If you look at the consumer, it’s not just the average household that is getting impacted the most, actually the poorest people,” Varshney said.

Due to inflation, they’ll be forced to spend most of their money on basic necessities and will be cutting down on anything else.

A Bank of America report found that the most impacted by inflation are Black and Latino communities, rural households and those without a college graduate at home.

Low-income families also experience a 0.5% higher inflation rate than high-income families.

California state leaders are still discussing a gas rebate, but Varshney said this short-term plan is not enough.

“A handout check is not going to help fix the long-term problem. A check will probably last for a few days, for a few weeks, but then after that, the problem is still on the table,” Varshney said.

Contributed by local news sources

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