Study Warns of $7 A Gallon Diesel in California By 2020

A study commissioned by the California Trucking Association claims the combined effect of a proposed cap-and-trade carbon emissions program and a pending 2020 low-carbon fuel standard by the California Air Resources Board could potentially drive diesel fuel prices up to $6.69 a gallon.

The study, prepared by Stonebridge Associates of Bethesda, Maryland, said the cost disadvantage of diesel fuel in California compared to neighboring states such as Nevada and Arizona, could be as high as $2.33, resulting in long-haul truckers re-fueling across the border in those states, as well as putting California-based trucking fleets at a major cost disadvantage.

The study claims the increased fuel prices could result in as many as 617,000 lost jobs in the containerized import sector, $68.5 billion in lost state domestic product, $21.7 billion in lost income, and $5.3 billion in lost state and local taxes.

The study also warned of the ripple effect high fuel prices could have on food, fuel, clothing and other consumer goods transported by truck in the state.

Truck Trend

About these ads

4 responses to “Study Warns of $7 A Gallon Diesel in California By 2020

  1. Duh! That’s the plan!

  2. Not to worry. California will have 40% fewer people by 2020.

  3. I have said it before; truckers need to switch to CNG so they can save money on fuel cost. The side benefit is lower road tax revenue from CNG vs. diesel so the state will loose tax money for roads.

  4. want to bet they won’t come up with other taxes
    and regulations there already starting to outlaw owner operators at ports

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s