The ongoing conflict with Iran, coupled with the closure of California refineries, has continued to drive up fuel prices in the Silver State.
In Nevada, diesel prices have risen 58.3% since late February. This is the second-fastest rate in the county according to GasBuddy, behind only Arizona.
It's cutting into the trucking industry as a whole, with big impacts on the little guys.
“Especially for your smaller mom and pop operators and people who use brokers. Sometimes it's hard for them to be able to capture that revenue back so they end up eating it,” said Paul Enos, CEO, Nevada Trucking Association.
One of those truckers said for trips that pay very little per mile, it's just not worth it.
“For example, if you get one load right now over here in Reno, go to Bakersfield, California,” said Yuri Balcenti. “If you want for example, an Amazon, they pay $1.80, $2.50 [per mile] maximum. You'll spend around 4, 500 dollars in diesel. You're going to get 300 for the trip. This is nothing.”
Balcenti said that money isn't pure profit; it has to cover other expenses as well.
“You need to pay a lot of fees, IFTA, insurance, registration, the leases extension,” he said. International Fuel Tax Agreement (IFTA) taxes are fuel taxes paid based on which state miles are driven in, not just where fuel is purchased.
Balcenti said each tractor should be replaced every five to six years or so, which is nearly impossible on a limited budget.
Even if truckers get a good amount of money, Enos said some of them aren't paid right away.
“A lot of times you're not getting paid immediately. You know, you have a 30 or 60 or sometimes even a 90-day float in terms of when you get paid,” Enos said. “So that's the money that you're putting out there right now. And when that price of diesel fuel goes up, like it has over the last month, that's just more money that's waiting out there."
Edwin Santiago drives for a company on the east coast. He said the fuel costs on either side of the country are night and day.
“Most of the time we end up having to fill up before we come over here and run over here and be able to have enough fuel to get out, because the prices are just so, so brutal,” he said.
As of March 31, the average price of diesel in Nevada is $6.15 per gallon. Nationally, the average sits at $5.45.
