Surging Diesel Prices Squeeze Towing Industry

Diesel prices have surged far faster than gasoline since the outbreak of the U.S.-Israeli war with Iran on Feb. 28, raising concerns across transportation-dependent industries, including towing. According to the U.S. Energy Information Administration, diesel costs have climbed about 45 percent, compared to a 35 percent increase for gasoline. The agency expects diesel to peak above $5.80 per gallon this month.

The sharp rise is tied to tight global supplies worsened by disruptions in the Persian Gulf, a major exporter of diesel and jet fuel. “You’ve lost that supply in a market that was already tight, and there’s no way to replace that,” said Jason Gabelman.

For towing companies, the impact is immediate. In Missoula, managers at Red’s Towing & Accessories Plus say their diesel-powered fleet runs constantly, making fuel costs unavoidable. “Our trucks are on the road all day, every day… we see the impact,” said manager Brittany Cowan, noting the company has added temporary fuel surcharges while absorbing some costs. As diesel prices remain elevated, towing operators nationwide face tighter margins and shifting demand. Source: https://www.nytimes.com