Oklahomans can’t seem to catch a break this summer. June and July have delivered skyrocketing gas prices and record-breaking temperatures. While prices at the pump have decreased for five straight weeks since they peaked in mid-June, Oklahomans are not completely out of the woods yet.
According to Patrick De Haan, head of petroleum analysis at Gas Buddy, over the weekend, the most common gas price across the country was $3.99 per gallon. In Oklahoma, the average still sits well above $4.00 per gallon at $4.216. Pottawatomie County rests just below the Oklahoma average at $4.150 per gallon.
While prices have seen a 40 cent decrease over the past 35 days, compared to a year ago, people are paying nearly $1.35 more per gallon than they were last summer. All 50 states still average more than $4.00 per gallon.
Diesel prices are generally even higher than normal gas prices and according to the New York Times, diesel prices are decreasing at a slower rate than regular fuel.
Diesel prices peaked about a week later tha regular gas at $5.816 per gallon in late June and currently hover around $5.535 nationally. In Oklahoma, diesel prices sit at $5.058 per gallon, slightly above the disheartening $5 mark.
Randy Gilbert, owner of Gilbert and Sons Trucking company in Tecumseh, says his company has felt the weight of diesel prices all summer. “Prices are 70 to 80 percent higher than they were this time last year,” Gilbert said.
Gilbert and Sons Trucking is an over the road trucking company in the 48 contiguous states and parts of Canada. They primarily operate in Southern California, Georgia, Ohio and Illinois, but their warehouse is in Tecumseh.
Most stations his trucks fill up at have a pump limit of $1,000. Right now, his trucks can’t even fill up all the way because a full tank would exceed the $1,000 limit.
In addition to the record-breaking diesel prices, truck parts are more expensive and harder to find. “We’ve had to park trucks and wait for parts to arrive,” Gilbert said.
The combination of the high diesel prices and truck parts has had an adverse effect on the trucking industry, but Gilbert said the costs are falling on consumers as well. “The trucking industry affects the entire economy,” Gilbert said. “Goods have to be on a truck to get to their final destination.”
The price of transportation is factored into the price consumers pay for goods. When it costs more for trucks to operate, the price consumers pay for a good is increased to offset the transportation cost. “When the cost of fuel goes up, everyone is affected,” Gilbert said.
The fall in gas prices come after the Biden administration’s decision to tap into the nation’s Strategic Petroleum Reserve. Consumer demand for fuel has also decreased. According to the U.S. Energy Information Administration, Americans drove less throughout the second quarter and into the first half of July. Americans are spending $140 million less per day on gas than they were a month ago, according to the New York Times.
While the price decrease has given some much needed breathing rooms for American families, some experts say prices could peak again in August. “It’s a nice little reprieve in the middle of the summer, based on more supply and less demand,” said Tom Kloza, global head of energy analysis at Oil Price Information Service. “But I’m very, very reluctant to say we won’t see $5 gasoline again.
Gilbert mentioned a couple things that need to change for the trucking business to return to normalcy and fuel prices to decrease. First, he said federal restrictions on natural resources should be relaxed. He said companies should be able to tap into the natural resources we have in Oklahoma and across the country. Second, he said the workforce needs to return to pre-Pandemic levels. “Just like everyone else, we all need more workers,” Gilbert said.
Record-breaking gas and diesel fuel prices have loomed over the economy for months. Amos Hochstein, the special presidential coordinator for international energy affairs, said on CBS News’ “Face the Nation” he expects gas prices “to come down more towards $4.”
Although any disruption in the economy could increase the price again, hopefully gas prices will continue to fall as Oklahomans return from summer travel and head back to school.
“Prices are 70 to 80 percent higher than they were this time last year,” said Randy Gilbert, owner of Gilbert and Sons Trucking.
