Macon transporters navigate spiking fuel costs

Mario Lyder and his wife Melanie Meadows-Lyder own Lyder’s Towing and have a fleet of freight trucks that rely on diesel fuel.

“Diesel is to these trucks what blood is to the body,” Lyder said. “Without diesel, they can’t function. Without blood, we can’t function.”

At their yard in Macon, they have a tank that provides about 8,000 gallons of diesel for their trucks so their staff doesn’t have to fill up while they’re out on the road. 

Diesel is the most expensive fuel available now, averaging at $5.35 a gallon in Macon, according to AAA. Because of this, Lyder’s Towing — which tows everything from small vehicles to semitrailers — is spending more than $40,000, sometimes twice a week, to fill up its tank — an expense that was once closer to $25,000, he noted.

Meadows-Lyder said they don’t want to make personnel cuts. She said she knows the business provides a livelihood for its more than 10 drivers and their families. However, she said they’re also walking a tightrope — trying to keep prices fair and lower than competing services.

The company is especially affected because the math of the freight industry has changed. Meadows-Lyder said that four years ago, even when gas prices were higher, the high cost “didn’t hit as hard” because there was a shortage of drivers and a massive amount of freight. To get goods moving during the COVID-19 pandemic, shippers paid higher rates, which helped truckers handle the price at the pump.

Now, fuel is expensive again, but the high pay has disappeared. Meadows-Lyder added that, because of national tariffs, there’s less freight coming in on ships and less demand for drivers. Because the price of freight hasn’t gone up enough to offset the cost of fuel, her company is spending up to $15,000 more for each tank fill-up.

For now, the Lyders are “eating” the increased expenses and facing a future driven by geopolitics. They’re not alone, Lyder said: “Anyone that’s running diesel, gasoline, whatever [fuel] it may be … they’re feeling the pinch.”

Johnny Sampson, owner of Sampson Global Transportation in Macon, agrees. His van service transports customers throughout the South. He knows many of his regulars are living paycheck to paycheck, but higher fuel expenses means “we have to go up on our prices,” he noted.

Before fuel prices started to climb in March as a result of the Iran war, customers using Sampson’s service would pay around $250 for a roundtrip journey between Georgia and Florida. That price now runs up to $380, Sampson said.

He said he’s thankful his business only operates the one van — otherwise, he might have to shutter his operation.

“It’s a big impact,” Sampson said.

The Iran war has rattled energy markets and caused supply chain disruptions, particularly as the Strait of Hormuz, a key Middle East shipping waterway, is blocked. The conflict erupted Feb. 28 and has spiked fuel prices across the country, with the national average gas price surpassing $4 a gallon for the first time in four years earlier this month.

According to data from AAA, the average price of a regular gallon of gas in the U.S. was $2.98 at the beginning of March. Now, it’s $4.14. In Macon, that price is $3.73 — compared to a March 7 average of $3.23. Macon is largely in line with the Georgia average, which has climbed 52 cents since March 7 and $1.02 from the February average.

Diesel prices, on average, are $5.64 per gallon across the country, AAA reports. A month ago, that price was $4.51. In Macon, the current average price for a gallon of diesel is $5.35, an increase of 84 cents from last month’s local average. As with the price of a regular gallon of gas, Macon’s diesel price reflects the state average. That price has increased by $1.84 from the February average reported by the Georgia Department of Transportation.

It’s unclear when the Iran war will resolve and the energy markets will settle, but Georgia’s leaders are attempting to bring businesses — and residents — a bit of relief. On March 20, Gov. Brian Kemp signed House Bill 1199 into law, which suspends the state motor fuel excise tax through 11:59 p.m. on May 19.

That tax, according to personal finance news service Kiplinger, is “roughly 33 cents per gallon of gasoline and about 37 cents per gallon of diesel.”

Lyder said fuel prices “affect everybody,” something he thinks most people don’t understand.

“Whether it affects you at the grocery store, whether it affects you in your bills … you might have gone to a store to purchase an item, but a truck brings it to the store,” he noted.

People often wonder why everything seems more expensive — and Lyder summed it up: “That’s the reason why — [fuel costs].”