ATLANTA — Diesel fuel prices have increased by more than $1.50 per gallon over the last month, creating a significant financial burden for transport companies in Georgia.
Orlando Lynch, president of Atlanta Peach Movers, told Channel 2’s Michael Doudna that the rising costs are making it difficult to maintain profit margins while attempting to keep consumer prices stable.
The price hike follows the start of international conflict and pre-existing supply issues that have pushed fuel costs nearly $1 higher than they were on Jan. 15.
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Experts warn that while businesses can absorb these expenses for a short period, the increased costs will likely be passed on to consumers of almost all products within a matter of weeks.
Lynch has spent more than 30 years building Atlanta Peach Movers, which operates dozens of vehicles, including 20 to 30 massive trucks that often run simultaneously.
Lynch noted that the sharp increase in diesel prices has created a difficult environment for his business.
“Well, in a competitive market, it’s tough,” Lynch said. “The price is the price, you know. If we don’t fill our trucks up, we can’t move our customers. So we’re kind of over a barrel right now. Literally.”
Dr. Denish Shah, a Georgia State University professor, said that diesel is essential for transporting almost every product and commodity available to the public.
“When oil prices go up, everything goes up,” Shah said. “All prices of every single commodity, every single product, go up.”
Shah added that the market already faced supply chain challenges before the current conflict, and the situation has worsened in recent weeks.
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Some companies are using private tankers to store fuel in an attempt to mitigate costs, but owners said they are unsure how much longer they can avoid raising rates.
Shah explained that businesses have a limited window to manage high prices before the effects reach the general public.
“It can be absorbed in the short run, but not forever,” Shah said.
For Lynch, the primary concern remains the long-term viability of his company’s profit margins. He said he intends to keep prices stable as long as possible but acknowledged the significant strain on his business operations.
“We’re in business to make a profit, and it’s really affecting our business,” Lynch said.
Shah said that if the conflict ends soon, the overall impact on consumers will be minimal. However, he noted that the longer the war continues, the larger the financial impact will be for everyday people.
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