Rising diesel prices mean higher costs for Texans far beyond the pump
Whether you're topping off your tank or just buying a tomato for dinner, rising fuel prices – especially diesel – are about to hit consumers across the board.
Tow truck driver Gilbert Estrada says the spike is already reshaping his workday and his wallet.
Estrada, who drives for a small towing company and relies on diesel, says he's now filling up twice a day.
"I used to be $60. It's $100 now," he said.
Diesel up 59% in one year
According to AAA, the average price of a gallon of diesel in Texas was $3.21 a year ago. Today, it's $5.14 – a 59% increase.
To keep up, Estrada has added a fuel surcharge to every trip.
"I'm charging more like 15% to 20% of the total," he said. "That could be a good $50 or $60 more than last year."
Amazon adding a fuel surcharge too
It's not just small operators feeling the squeeze.
An Amazon spokesperson confirmed the company will add a 3.5% fuel and logistics surcharge to fulfillment fees beginning April 17, citing rising transportation costs.
Why prices are rising
Professor Bruce Bullock, director of the Maguire Energy Institute at SMU's Cox School of Business, says several forces collided at once.
Refineries were already raising prices as they shifted from winter to summer fuel blends and temporarily went offline for maintenance.
Then came the war in Iran.
"With 20% of the world's oil essentially not making it to the market, prices are going to remain high," Bullock said. "Even if there's a ceasefire, unless it includes security in the Strait of Hormuz, prices will stay elevated for an extended period."
What it means for consumers
Transportation costs are embedded in nearly everything Americans buy.
"Transportation is baked into the price of virtually everything we eat, everything we buy," Bullock said.
From groceries to online orders, the ripple effects of diesel prices will show up quickly – especially in a culture where delivery on demand has become the norm.
