Diesel price surge threatens profitability of U.S. logging firms
Rising diesel costs are squeezing the American timber sector, with the American Loggers Council warning that fuel now makes up nearly half of operating expenses.
The American logging industry is facing a financial crunch as diesel prices surge, according to Scott Dane of the American Loggers Council. He explained that fuel now accounts for 40-45% of a logger's operating costs, up from 25%, with a single truck fill costing about $1,350. This sharp increase is wiping out profitability, especially since timber prices have not risen in roughly ten years.
Dane cited a recent text from a Virginia logger who said the business is “dying” because of fuel costs. The council has appealed to the administration, requesting a suspension of the federal diesel tax and a halt to diesel exports under the Emergency Powers Act. He described the situation as an emergency for the sector.
Why it matters
Higher diesel prices could force many U.S. logging companies out of business, affecting timber supply and rural economies.
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