Diesel

Sometimes big problems can best be understood by using a simple example. A new neighbor moved in to our area last summer and he owns his semi truck. He has three school age children and his wife is a stay at home mom who home schools the children. He drives about 65,000 miles per year and get 5 miles per gallon which means he uses 13,000 gallons of diesel per year. He says since diesel has been under $3 he is doing very well but if it goes to $4 he has to tighten his belt and do without. He says that somewhere between $4 and $4.50 he starts to lose money and must draw out of savings to stay afloat. The price has risen 40 cents in the past few months and this cost him $5,200 on an annual basis. Most people pay little attention to the price of diesel but for some it can have a profound effect.