Fueling frugality: North Idaho consumers, grocers, contractors feeling record diesel costs
RAY ERKU | Hagadone News Network | UPDATED 1 hour, 34 minutes AGO
Trisha Miles pushed a shopping cart full of groceries, a small child leading the way in a toy car, toward her vehicle. It sat in a busy Super 1 Foods parking lot in Hayden on Friday.
Diesel prices just hit an all-time high this past week in Idaho, according to motor club AAA. The cost per gallon has now increased from about $3.82 last year to over $6.
Miles, trying to balance her budget amid rising costs, said she’s buying less meat and more off-brand products. She’s cooking more at home, too.
“The rising costs of fuel really make doing this here more difficult,” she said, motioning to her grocery cart. “Sometimes, I need to make adjustments in groceries.”
As war with Iran rages on, national economists this past week revealed that it's costing the average American household about $1,650. According to sources like the Bureau of Labor Statistics Consumer Price Index and Average Price Data, the average Idaho household has already paid an additional $3,300 or more for goods and services due to rising costs.
Rising gas and diesel costs are felt everywhere. Regular motorists are paying more in gas. Contractors are paying more for materials. Grocers are trying to eat as many surcharges as possible when fresh produce trucks in from places like California and Arizona.
Super 1 Foods Vice President Randy McIntire said impacts of inflation are reflected by suppliers.
“Nothing moves in our country without diesel,” he said. “It’s got to affect wholesale costs, especially for perishable items.”
This past week has seen an escalation of military activity in the Strait of Hormuz. This sea channel alone accounts for at least 10% of global seaborne diesel transportation.
Roger Ohlhauser oversees the warehouse, facilities and transportation department for Super 1-affiliate URM Stores. As vice president of operations, he said rising diesel costs are being felt in “a couple different avenues.”
“It’s extremely costly,” he said of diesel’s price per gallon. “Where it was $4 six months ago, it’s now $7.”
Rising prices are being felt in housing, as well.
According to Noah Stam, owner of Post Falls-based Stam Structures, soaring diesel prices have driven upward a 75% cost increase to building a home.
For building a typical home, he said it takes about 500 gallons of diesel. At about $3.75 per gallon last year in July, that means it costs between $1,800 to $2,000 in diesel per home.
Around the same time this year, with a price per gallon of diesel about $6, Stam faces between $3,100 and $3,500 in diesel costs for building that same home.
“For a diesel surcharge, it’s anywhere from a couple hundred to a thousand bucks,” Stam said. “On the building side, locally, it’s making the prices go up a little bit.”
Stam said the diesel costs also directly impact shipping.
“It’s costing us more to get all that material,” he said.
When it comes to the kitchen table, data shows that Americans are paying an additional $310 for groceries. According to the Independent Grocers Alliance, fuel makes up about 15% to 30% of total costs for food.
Grocery prices were up 2.7% compared to this same time last year, data from the University of Michigan shows.
For North Idahoans like Miles, rising diesel costs continue to fuel some improvisation in their households.
“We forgo things that maybe we can do without,” she said.
ARTICLES BY RAY ERKU
Fueling frugality: North Idaho consumers, grocers, contractors feeling record diesel costs
North Idaho consumers, grocers, contractors feeling record diesel costs
Trisha Miles pushed a shopping cart full of groceries, a small child leading the way in a toy car, toward her vehicle. It sat in a busy Super 1 Foods parking lot in Hayden on Friday. Diesel prices just hit an all-time high this past week in Idaho, according to motor club AAA. The cost per gallon has now increased from about $3.82 last year to over $6.
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