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Trucking Fuel Costs Expected to Increase By $6.6 Billion

Posted on: Thursday, 27 April 2006, 00:00 CDT

By Stacie Hamel, Omaha World-Herald, Neb.

Apr. 26--The trucking industry will spend an estimated $93.4 billion on fuel this year, up $6.6 billion from 2005, the American Trucking Associations said Tuesday.

The trucking industry is facing the highest fuel prices in its history, said Bill Graves, ATA president and chief executive of the Alexandria, Va.-based organization. Labor is the top expense for most trucking companies.

"An affordable supply of diesel fuel is imperative to keep our trucks moving," Graves said. "Fleets must be guaranteed sustainable operating costs in order to continue delivering everything that is delivered by truck."

Fuel represents the second-highest operating expense for many motor carriers, accounting for as much as 25 percent of total operating costs.

The revised estimate of total fuel costs for 2006 was based on current fuel price forecasts, the trade group said.

Fuel prices could increase further this year with the introduction by midyear of ultra-low-sulfur diesel. The new fuel costs more to refine and distribute than regular diesel.

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Source: Omaha World-Herald

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