Rising diesel prices puts pressure on Pittsburgh-area farmers, transit agencies
As diesel prices continue to sit at all-time highs, they have a direct impact on several industries. Farmers, truckers and transit companies get saddled with the cost.
One industry impacted by the surge in prices in the Pittsburgh area is farming. Diesel is the lifeblood of all their equipment and helps get the food to the table.
For our region, AAA says diesel is $6.64 a gallon. That's up from $6.37 last week and $4.05 one year ago.
"We have another tractor, and it's larger, and I always say it drinks the fuel," said Arthur King with Harvest Valley Farms.
For King, it's about being economical with their fuel. That includes planning more efficient routes when taking produce to markets. Using the tractor and other equipment less isn't a viable option.
"None of that is an option, so we just have to bite the bullet when it comes to the increased costs of diesel," King said.
According to King, his farm can take this blow and make it for several more months. He wants to avoid raising prices too much to impact customers, but he knows the same can't be said for other farms.
Another big user of diesel is buses. Pittsburgh Regional Transit said it uses about 6 million gallons per year.
"As we go along throughout the year, we lock in a percentage of our fuel needs with futures contracts. So, these contracts reduce our exposure to very high fuel," PRT spokesperson Adam Brandolph said.
Essentially, they pay a more stable rate with the contracts and avoid the highest prices that we are seeing now. These fuel contracts are locked months in advance.
PRT said if prices stay at such a high rate, they will have to budget for that in the new fiscal year.
"We will be paying, and likely be paying more. But we likely won't be paying the extreme prices that we otherwise would be," Brandolph said.
One thing helping to cut fuel costs for local farms is the distance of the fields to the farm. In King's case, everything is within 25 miles, which cuts fuel consumption.
