industry
Why soaring prices aren't breaking America's diesel habit (axios.com)
The quickest and most affordable response to historically high diesel prices is also the simplest: Use less of it. Why it matters: Diesel is so entrenched in farming, trucking and other industries that even soaring prices aren't enough — at least not yet — to prompt a wholesale shift to alternatives from electric semi trucks to manure-powered tractors. Catch up fast: Diesel prices have climbed to record highs since the U.S. war with Iran began in March, rising faster than gasoline amid global oil supply disruptions . Diesel averaged $6.31 a gallon Thursday, up 74% from a year ago, according to AAA . Regular gasoline averaged $4.27, up 39%. The big picture: Gasoline gets the attention, but diesel is the workhorse of the American economy. It powers grocery trucks, tractors, freight trains, construction equipment, hospital backup generators and even school buses . Driving the news: The price spike is hitting farmers during the fall harvest. "Farmers buy diesel by the truckload, so we're talking about hundreds of thousands of dollars in diesel, and when it goes up the way it has spiked, that's the difference between profit and loss in a year," said Curt Blades, senior vice president at the Association of Equipment Manufacturers, a trade group representing tractor makers and other heavy-equipment manufacturers. The financial pain varies: Trucking companies can often pass higher fuel costs to customers through surcharges. Farmers, who have little control over crop prices, generally can't. The economic pressure has become political ahead of the midterm elections. President Trump announced $8 billion in one-time aid for farmers at a campaign rally in Kansas on Monday, where Republicans face a competitive Senate race. "It's a bit too soon to tell the impact," Blades said of the aid package, though he welcomed support during harvest. State of play: Trucking and agricultural equipment experts say the most immediate savings come from using existing diesel engines more efficiently. Truckers can slow down and reduce idling. Farmers are increasingly using GPS-guided tractors to avoid covering the same ground twice, a practice known as precision agriculture. Biodiesel and renewable diesel can reduce petroleum dependence without replacing existing engines, but government blending requirements — rather than high diesel prices alone — are driving growth, according to Clean Fuels Alliance America, an industry trade group. Zoom in: Batteries that power truck drivers' sleeping quarters without idling the engine are gaining traction. Nevada-based Dragonfly Energy sells systems that recharge through the truck's diesel-powered engine while driving, then power air conditioning and other appliances while parked. The company projected a 160% increase in third-quarter trucking revenue, a bright spot amid otherwise sluggish financial performance. Texas-based Stevens Transport says 400 of its trucks use Dragonfly's batteries, cutting diesel consumption by about 4% compared wit
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