All trucking and transportation industries rely on diesel fuel to keep the commodities moving throughout the United States, but there is an increase on diesel fuel. The Department of Energy reported a 4.2 cent increase in the country's national average diesel fuel price which pushed the national average to the highest point in nearly four years.
How does the increase in fuel prices affect our economy and small businesses and how would this factor into the increase? Taxes also factor into the higher costs for diesel fuel. The federal tax on diesel fuel is 6 cents more than gasoline per gallon along with crude oil. Increases in oil prices can depress the supply of other goods because they increase the costs of producing them.
The car buying industry would also become affected as consumers are trading in their SUV and pickup trucks for smaller, more fuel efficient vehicles. The consumer could have less spending money which includes dining out and shopping.
The pricing of homes can be impacted as commuters cut ways to shortened their commute and rely more on mass transit.