Diesel at some Bay Area stations nearing $9 a gallon as CA prices hit record highs
BELMONT, Calif. (KGO) -- Diesel prices are climbing to unprecedented levels in California, and Bay Area drivers are seeing some of the highest costs in the country.
According to AAA, California's statewide average price for diesel has reached $8.21 per gallon, far above the national average of $6.26. In some parts of the Bay Area, prices are even higher.
At a 76 station in Belmont, diesel was selling for nearly $9 a gallon.
"Diesel has hit an all-time high. Yesterday was the record and then today it was broken again," said Doug Johnson, spokesperson for AAA Northern California.
Johnson says ongoing instability in global oil markets is putting pressure on fuel prices.
"The global oil markets, there is obviously everything going on with Iran and the Strait of Hormuz, but we also see that there's another conflict in the Middle East between Saudi Arabia and Houthi rebels in Yemen," Johnson said.
MORE: US diesel prices soar past $6 a gallon, deepening strain for hauling everyday goods
The price surge extends far beyond the pump.
Because diesel powers much of the nation's transportation system, higher fuel costs affect trucking companies, agriculture, construction, and supply chains. Those increases are often passed along to consumers in the form of higher prices on everyday goods.
"We're really in a bad spot for everybody, and it doesn't mean just my business, it means everybody's family," said Mark Woods, vice president of Wildwood Express, a trucking company based in Fresno.
Woods says the rapid rise in fuel prices has dramatically increased his operating expenses.
"Three weeks ago we were probably between $25,000 and $30,000 for a load of fuel," Woods said. "In the last two weeks, just last week, the last bill that I got was $54,000."
According to Johnson, that nearly $30,000 increase was for roughly the same amount of fuel.
MORE: Oil prices climb over $100 per barrel as US war in Iran continues
As costs continue to rise, Woods says businesses like his may have little choice but to charge customers more.
"I'll probably have to do some speaking with them and figure out how they are going to pay me more for me to do what I'm supposed to do to stay in business," he said.
Many drivers typically expect fuel prices to ease after Labor Day, when demand often begins to decline. However, AAA says this year has not followed the usual pattern.
"Typically we see a drop in demand, a drop in prices. That just hasn't happened this year," Johnson said. "Again, that's in a typical year and this year has been far from typical."
For now, experts recommend using fuel-price tracking apps like GasBuddy or AAA to compare prices and find the lowest-cost fuel stations nearby.
As diesel prices continue to set records, both businesses and consumers are bracing for the possibility that higher transportation costs could ripple through the economy in the weeks ahead.
