Record diesel prices put pressure on Oklahoma farmers, truckers

SHARE NOW

Diesel prices are hitting record highs in Oklahoma, putting added pressure on farmers, truck drivers and other businesses that rely on the fuel to keep moving.

Diesel prices are hitting record highs in Oklahoma, putting added pressure on farmers, truck drivers and other businesses that rely on the fuel to keep moving.

AAA Oklahoma says the statewide average for diesel reached $5.87 a gallon Wednesday, compared with about $3.27 a year ago. The national average was $6.31 a gallon.

In the Tulsa area, AAA reported an average of $5.95 a gallon.

A stop in Vinita showed diesel selling for $5.89 a gallon, while a station in Afton had diesel priced at $5.99.

For farmers, the higher prices can quickly add up.

Dillon Johnson, a farmer with Johnson Brothers Grain and Livestock in Afton, says his operation farms more than 5,000 acres and runs more than 1,000 head of cattle.

The operation uses diesel for tractors, combines, trucks and other equipment. Johnson says the farm purchases between 50,000 and 60,000 gallons of bulk diesel each year.

“Every single thing I mentioned involves putting diesel in the tank,” Johnson said.

Johnson says the higher fuel costs are making it harder to plan for the future.

“It’s tough,” Johnson said. “That affects our long-term planning. You know, it affects profitability for this year, but also expansion plans.”

One tractor used by the operation can hold more than 400 gallons of diesel. At current prices, filling a tank that size can cost thousands of dollars.

Johnson says farmers also have limited options when it comes to simply using less fuel.

“We can’t really continue to operate at the level we are and run less equipment and burn less fuel,” Johnson said.

The higher diesel prices also extend beyond the farm.

Johnson says trucking companies are increasing rates to help cover their higher fuel costs. He says truckers may charge an additional dollar to $2.50 per mile, depending on the circumstances.

“And everything that you see in a store has been on a truck at some point,” Johnson said.

AAA Oklahoma says global crude oil market volatility is contributing to higher fuel prices. The organization says geopolitical conflicts and changes in the global oil market can affect crude prices, which then impact what drivers pay at the pump.

For now, Johnson says his operation is watching the market closely as it tries to plan around higher fuel and other input costs.

The impact of diesel prices, he says, is not limited to the farm, it can affect the businesses and transportation networks that move products across the country.