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High diesel prices could affect everyone

By: Meghan Backus
Updated: November 6, 2007
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truck2007-11-06-1194375554.jpgYou’re feeling the pinch, and the pain is getting worse, and now that diesel prices have reached new highs, business owners aren’t too pumped about fueling up either.

“I would say diesel fuel runs in my veins but it's too expensive,” said Ken Johnson.

He is the fourth generation in his family to be in the freight-hauling business. He says with diesel prices rising to $3.47 in Rochester, it costs from $350 to $500 to fill up one truck at Leonard’s Express. His company has 100 of them traveling all over the country.

“It's within the top 3 line items as far as costs goes,” he said, “typically 30 to 40 percent of the budget. And as the price goes up, it becomes a bigger part of the budget.”

Than means Leonard’s may have to charge their customers more money, and Johnson says although his customers are understanding of the rising costs, he’s trying to cut down on fuel.

“We set up deals with some of the chains with volume discounts, and we try to run our trucks a little bit slower,” Johnson said.

Although you probably don't fuel up your car with diesel, you could feel the trickle down effect as a consumer, and you could be paying more for other products, down the road.

“Bottom line, the end user is always the one that ends up paying for it,” Johnson said. “When we go to the grocery store, when we go to do our Christmas shopping and school shopping, the end user always ends up paying for it.”

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