California Diesel Prices Skyrocketing

Price Spikes Topping 60 Cents Per Gallon More Than the National Average Put the Brakes on California Truckers and Fuel Taxes That Build Highways!

WEST SACRAMENTO, Calif., Aug. 18 -- Diesel fuel prices have hit an all time high in California, topping San Francisco off at $3.15 per gallon. The national average is only $2.55 per gallon. California truckers are being forced off their interstate highways, unable to compete with trucks driving in from other states with less expensive diesel fuel. "Big rigs can travel nearly 1800 miles on a single fueling, making California the no-fuel zone for out of state trucking companies and negatively impacting the state's highway revenue," said Michael D. Campbell, Chief Executive Officer of the 2500 member California Trucking Association (CTA).

In 1993, enthusiastic California refiners convinced the California Air Resources Board (CARB) to adopt a California-only diesel fuel standard. The regulation prohibits the import of diesel fuel by any entity other than a California refinery. Assembly Bill 679 (Calderon) would allow environmentally-friendly diesel fuel to be sold in the state regardless of where the refinery is located. "If the fuel is as clean as or cleaner than the fuel sold by California refiners, it could be imported and sold to California businesses. AB 679 will bring a screeching halt to both the tight supply of diesel fuel and the escalating diesel prices that are economically damaging California's agricultural and trucking companies," stated state Assemblyman Ron Calderon, the author of the bill.

"The prohibition on the import of compliant fuel was and is an unholy alliance between the government and a handful of California refineries, and penalizes the truckers based within the state with upwards of 60 cents per gallon price difference," stated Stephanie R. Williams, Senior Vice President of CTA.

"Higher CARB diesel costs have caused a slowdown in California truckers' replacement of their older vehicles," said Jim Ganduglia, President of Ganduglia Trucking located in Fresno. "We are priced out of the market and can't afford less polluting trucks because California fleet owners must absorb the higher CARB diesel costs to compete with interstate trucking operations."

In 2006, the federal fuel specifications for diesel will make the fuel lower in sulfur content than gasoline. California truckers supported the ultra low sulfur diesel fuel federally and were expecting to end the state-only standard. CARB has recently made a policy decision that they will mandate a different formulation of diesel fuel for California in 2006. The fuel formulation is yet to be announced. "This is a bad trade when the state accepts the current 5% reduction in pollution estimated for diesel fuel and foregoes the 90% reduction from purchasing modern equipment," stated Williams. "Shouldn't they have to prove that they can make a cleaner fuel before they adopt a new standard? Transportation funding is dwindling and the price of diesel keeps California truckers in older trucks, but why?"

                  Historical Diesel Engine Standards

   gr/bhph(1)     1987    1988    1991    1994    1998    2004    2007/10
   NOx            10.7    6.0             5.0     4.0     2.5     1.2/0.2
   PM             1.0(2)  0.60    0.25    0.10    ----    ----    0.01

CTA is supporting AB 679 sponsored by Assemblyman Ron Calderon (Montebello) to seek relief from skyrocketing fuel prices.

  Regional Trucking Companies to contact:

   Armando Freire Dimex Freight            San Diego      619-661-0135
   Robert Ramorino, Road Star Trucking     Hayward        510-487-2779
   Jon Cramer, Certified Freightlines      Santa Maria    805-925-9900
   Val Liese, Jack Jones Trucking          Chino          909-627-7502
   Jim Ganduglia, Ganduglia Trucking       Fresno         559-251-7101
   Robert Massman, Dependable
    Highway Express                        Los Angeles    323-855-0754
   Patty Senecal, Transport Express        Rancho
                                            Dominguez     310-678-7782
   Al Nunes, AC Trucking                   Manteca        209-823-3224