TERRE HAUTE, Ind. (WTWO/WAWV) – According to AAA, the price of a gallon of diesel fuel in Indiana is $5.39.
This astronomically high number is directly affecting the farming and transportation industry because both rely heavily on diesel.
F.L. Wilson Inc. President Fred L. Wilson Jr. said that much of his farming equipment runs on diesel including irrigation systems and tractors. Wilson stated that he’s feeling the effects of the high prices.
“Diesel prices, like all fuel prices for everyone, has gone astronomically through the roof,” Wilson said.
High diesel prices could ultimately affect the consumer down the road. High costs at the grocery store could be linked to high diesel prices for the farming industry.
“It’s going to be a hard hit on everybody throughout the economy,” Wilson explained. “It’s going to affect food prices and it’s going to affect a lot of things.”
Professor of Economics Robert Guell said that its about 35% higher for trucking companies to transport goods. He said that households should continue to expect the price of food and clothes to rise.
“The reason that the grocery bill is as high as it is and that the clothing cost are as high as they are is because all that stuff is being transported,” Guell explained.
Guell added that diesel supply simply cannot catch up to its current demand. He said that it’s hard to predict when the current price of diesel could drop.