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Can you explain your thinking? Truckers are largely using diesel, which has a different excise tax (currently at $0.389/gallon)[1]. Maintaining a higher rate
by mathquestion 4y ago
Can you explain your thinking?
Truckers are largely using diesel, which has a different excise tax (currently at $0.389/gallon)[1].
Maintaining a higher rate of speed burns fuel faster. According to a random site I found[2] (sorry, I'm not a trucker), an operator self-reported that efficiency goes down by about 1mpg when speed is increased from 55mph to 65mph.
The average price of on-highway diesel in California is currently $6.277/gallon[3]. Taking a hypothetical load from Long Beach to Sacramento (~400 miles) at 55mph will take 7.27 hrs and burn 57 gallons. Doing the same at 65mph will take 6.15 hrs and 66 gallons. In this hypothetical situation, the driver saves about an hour, and spends an additional $56 on fuel.
If the driver is paid hourly (unlikely) and paid more than $56/hr (unlikely), then the faster driving could be potentially worth the increased fuel cost. This is generally not true though, and driving faster does not reduce the cost of transport.
Even if the diesel excise tax goes up $0.02/gal (my brief searching didn't find out how much it will go up), in our hypothetical scenario this only adds $1.14 to the slower haul -- which is not a meaningful amount.
[1] - https://www.cdtfa.ca.gov/taxes-and-fees/sales-tax-rates-for-fuels.htm https://www.cdtfa.ca.gov/taxes-and-fees/sales-tax-rates-for-...
[2] - https://www.thetruckersreport.com/truckingindustryforum/threads/mpg-of-your-truck-full-and-empty.266087/ https://www.thetruckersreport.com/truckingindustryforum/thre...
[3] - https://www.eia.gov/dnav/pet/pet_pri_gnd_dcus_sca_w.htm https://www.eia.gov/dnav/pet/pet_pri_gnd_dcus_sca_w.htm
- nradov 4y agoYou aren't accounting for the capital depreciation expense of the truck. Longer term due to cost, environmental, and pollution issues we expect that the trucking industry will transition away from diesel fuel. Local routes will probably use battery electric power and over the road will burn natural gas.
- mathquestion 4y agoWhat does that have to do with "Truckers already are maxed at 55mph, add this and expect huge price increases"?