economyUnless you have been living under a rock for the last few weeks, you have seen the price you pay for a gallon of diesel fuel skyrocket; Oil prices have broken records everyday this week. Fuel went up 3.3 cents overnight and have set a new record for diesel at $3.909 a gallon. As I sit writing this article in Georgia, the sign on the truckstop says $4.01 per gallon, and there appears to be no end in sight for the run-up of prices.

Why the big jump, even with all of the gloom and doom stories about how bad the economy is? According to John Wilen, an AP Business Writer, Fed policy on interest rates, ignoring inflation to keep economy going, has driven down the value of the dollar, the same dollars we give to other countries for oil. It has also driven investors to put their money heavily into oil and energy, driving up the price even in the face of adequate supply.

“This cocktail’s been whipped up by the Federal Reserve,” said James Cordier, founder of OptionSellers.com, a Tampa, Fla., trading firm. “Until inflation is their number one concern, we have nowhere to go but up.”


It looks like until the Fed decides to stop dropping rates and confronts inflation, prices will likely continue to rise. Election year politics are surely playing a role, rhetoric over the lending crisis and slowing economy has also helped to drive down the dollar. But however bad the politicians seem to make things out, people are still driving, even at these rates. How much of the fuel problem is actually caused by mass hysteria fueled by the press and politicians???

Until fuel prices settle down, the only way that owner/operators and many companies are going to survive is to work smart. SLOW DOWN, start counting every penny, if your are not getting a fuel surcharge tied to actual prices, then you need to renegotiate your contract or go somewhere else. We must pass these rates on to the customer, who passes it on to the consumer, it is the only way that many will survive.

When the dust settles, and the weak are gone, those who are left in the business will be able to write their own check.

Nation Fuel Prices