American Trucking Associations Applauds Opening of petroleum reserves

ALEXANDRIA, Va.-The American Trucking Associations has applauded President Bush’s decision to open the Strategic Petroleum Reserve to ensure a steady supply of oil to the United States as well as help refineries badly crippled by Hurricane Katrina.

“Any steps the Bush Administration can take to ensure steady oil supplies are welcomed by the trucking industry,” Graves said. “This decision illustrates that the President is willing to take the necessary steps to ensure America’s economic well-being.”

ATA Chief Economist Bob Costello said retail diesel and gasoline prices are expected to spike in the short term. Hurricane Katrina has crippled refineries and disrupted the Colonial pipeline. Refineries in other parts of the country are unlikely to pick up the slack because they already are operating at near full capacity, reports ATA.

Rising fuel prices have been a significant burden on the trucking industry. The industry, which consumes 50 billion gallons of fuel each year, is on pace to spend an unprecedented $80 billion on diesel fuel this year, $18 billion more than a year earlier. That follows a $10 billion increase in fuel costs over 2003.

According to ATA, more than 500,000 motor carriers in the United States transport nearly 70 percent of tonnage carried by all modes of domestic freight transportation. Trucks hauled 9.8 billion tons of freight in 2004, collecting $671 billion dollars, or just under 88 percent, of total revenues earned by all transport modes.