Business Services Industry

Diesel Regulations Fuel Complaints from Trucking Firms, Utilities in Alaska.

Knight Ridder/Tribune Business News, January, 2003

By Tim Bradner, Alaska Journal of Commerce, Anchorage Knight Ridder/Tribune Business News

Jan. 18--Truck operators, rural utilities and fuel oil distributors say new U.S. Environmental Protection Agency requirements for ultra-low sulphur diesel will raise trucking costs and create a nightmare of a logistics problem for rural Alaska communities dependent on diesel-fueled power generation.

Harry McDonald, president of Carlile Transportation Systems, says an industry rule-of-thumb is that 50 cents added to the cost of a gallon of fuel raises freight rates by 10 percent.

Also, 50 cents per gallon added to the cost of fuel for the approximate 16 million gallons shipped to western Alaska utilities will add $8 million per year to the cost of...

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