LAS VEGAS (KTNV) — On Friday, April 3, Las Vegas saw its highest average diesel price on record, according to AAA, as the conflict abroad continues to affect oil supply and prices. The average price per gallon of diesel was $6.389 — up about 4 cents from the day prior, which also was a record before Friday’s price beat it.
When you put it into context, the increase is even more stark; $3.880 was the average price for a gallon of diesel at this time last year in Las Vegas. Today, it’s almost $3 more, and the businesses that keep our community running are feeling it.
I spoke with folks at a local logistics business about how this is impacting them.
Average diesel prices hit all-time record in Las Vegas, taking bigger bite out of budgets for businesses
I went out to Navis Pack & Ship to speak with operations manager Mitchell Jones. The business moves valuable pieces, supporting artists, furniture dealers, designers, auctions, and much more. Their crews and trucks are on the road daily, and he tells me the high diesel prices are taking a bigger bite out of their budget.
“We’re definitely feeling it in our pockets here, fueling up our trucks. It is the busy time of the year, too, so we’re definitely out on the road more, so with the fuel cost increase, it’s actually hitting our pockets more,” Jones said. “We’re fueling more because we are busy, so with the increase, I’d say it’s costing us a few thousand dollars a month extra on top.”
But they’re not passing that on to their customers, he said. He said they’re getting creative, investing in technology, and refining processes to try and absorb the cost and insulate their customers. One way they’re doing that is by mapping out their trips better.
“Like if we’re hitting Henderson one day, we don’t want to go to North [Las] Vegas the same day, so we’re mapping it out correctly in order to get to a point where it’s more fuel efficient for our trucks,” Jones said.
Right now, he said this does mean they are operating on thinner margins, but they’re holding out hope that prices come down soon.
“We’re definitely hoping that things patch up here soon and by the summer, things go back to normal,” Jones said.
