The American Trucking Associations Wednesday revised the trucking industry’s projected fuel costs for 2005 in light of the energy impact caused by Hurricane Katrina and the Energy Information Administration’s newly released fuel price forecast.

ATA said motor carriers will spend an unprecedented $85 billion on fuel this year, marking a $23 billion increase over 2004.
ATA President and CEO Bill Graves said the increased fuel price projections underscored the effect rising fuel costs are having on the motor carrier industry, and, ultimately, the national economy.
“These projections highlight the severity of the situation we are now facing,” Graves said. “Congress needs to ensure that the industry has access to enough fuel at reasonable prices so that motor carriers can continue to deliver America. Steps must be taken to reduce the magnitude of recent price spikes.”
Graves added that when the trucking industry spends more on fuel, it has less money to buy new equipment or to hire additional employees.
Earlier this week, Graves asked Secretary of Energy Samuel Bodman to direct the Energy Information Administration to report fuel prices twice weekly, instead of the normal once a week, until fuel price volatility eases. Doing so will aid trucking companies as they make business decisions impacted by fuel costs.
The Energy Information Administration on Wednesday significantly increased its estimates for average fuel prices this year and 2006. In its “Short Term Energy Outlook,” EIA projected diesel fuel would average $2.41 per gallon in 2005, up from a previous estimate of $2.29 per gallon. At the same time, EIA projected diesel would average $2.50 per gallon in 2007.