Will Diesel Cost $7 Per Gallon by 2020?

By Matthew Askari | May 11, 2012
Could the state of California see seven-dollar-per-gallon diesel prices by 2020? Yes, says a study commissioned by the California Trucking Association. According to a report in Truck Trend, the CTA study refers to the fallout of a cap-and-trade emissions program, and new 2020 low-carbon fuel standards. The study claims the state would lose more than 600,000 jobs in the containerized import sector, $68.5 billion in lost state domestic product, $21.7 billion in lost income, and $5.3 lost in state and local taxes. The CTA also suggests long-haul truckers would choose to fuel-up in neighboring Nevada and Arizona, where lower diesel prices could make a considerable difference. "Simply mandating something does not make it happen. CARB lives in an unrealistic dream world where our trucks run on wishes and dreams ignore reality," said Michael Shaw, President for External Affairs for the California Trucking Association. Voicing his frustrations, Shaw added "as an industry, we're very sensitive to fuel prices, and the impact we have on the environment and the road. Our members are investing billions of dollars in new equipment to reduce pollution. The challenge we face with CARB is they don't listen to the industry, and the economic impact regulations have." In response, a Public Information Officer for the California Air Resources Board, David Clegern, dismissed the study, suggesting numerous studies have suggested the use of biofuels and alternative fuels would lead to lower diesel prices. Clegern added the CTA "relies on a single, heavily-redacted analysis that was never published, and had no review whatsoever."
Source: Truck Trend