beluga whales at Shedd Aquarium.

>> First off tonight, $6 and $0.51 That's what Americans are paying on average for a gallon of diesel.

It's a record high in nearly $3 more than this time last year.

Joining us now to discuss what's behind the increase and how it's affecting consumers are Mike Matt Wells, vice president of the Midwest Truckers Association and Mark Witty, professor of instruction in the Department of Economics at Northwestern University.

Thank you both for joining us.

Mark, I want to start with you.

just mentioned the average price of crude per gallon of diesel sits at $6.

And $0.51 a month ago was $5 and $0.57 in the year-ago, which in retrospect is not that long ago.

>> It was $3.69 Break it down for us.

What's behind the increase?

>> the joke is we always say supply and demand.

And yes, it certainly supply we've seen this disruption of the supply of crude oil coming out of the Middle East.

And that's the basic input into into diesel.

We also some difficulties on the refining level that there's a crunch and that that we work on supply networks that are smoothly, able to take a little from where we expect come from now that's been disrupted.

And so the refineries that are most we just don't have the right refinery network given where oil is coming from now.

And so that's also creating some shortages and driving up prices.

>> And Matt, you've been doing this for a long time.

What's what's your reaction to watching diesel prices soar?

What are other truckers also saying that?

>> It's definitely difficult for the industry right now.

We operate on a on a very small margin by mile.

And whenever diesel fuel takes up 40% of your costs of operating your vehicle and you see those prices increased to levels that we've seen today.

It's definitely making it more difficult for the transportation industry to move things.

And definitely going to cost a lot more money because you know it we're not making money on this.

This is definitely something that's Austin, our industry.

And we have pass those costs on consumers.

At end of the day.

>> I mean, you've been doing this for a long time.

You know, what is the guidance that you give to other truckers right now?

>> What are those comments are right One of the very more most important things on trackers can do is keep an eye on their cost and make sure that they're operating under a diesel fuel surcharge.

Essentially that surcharge allows them to compensate the increased cost fuel on that they're occurring right now.

Hopefully this doesn't last forever by this is going to have some lasting effects for a while.

So they have to be able to adjust the rates to accommodate.

These increases were continuing to see.

>> And mark, last week, the price of diesel jumped to $0.42 Put that into perspective.

How drastic of a jump is that?

>> Representative services pretty big end.

I mean, I think fuel Getting him and hear him to sing fuels with 20%.

lot of transport.

We've got cars and trucks.

Trump has a labor but fuel is.

>> Is the heels of a percentage can be upwards of 40 to 50% of the actual depending on depending on what you're hauling.

How have you are and where you're going and can it can benefit your very much in the marketplace for it for a long haul to Mr.

General Ban Truck semi 1.20 EUR to 25% of your actual rate is fuel.

And when you're seeing that rate increased 50, 60 70%, that adds up very, very quickly.

>> I was talking about the fuel, fuel surcharge.

My understanding is, know that you're gonna make it was just a few planning when and how to get it to market and see his long-term contracts.

You guys can't guarantee a price because no feels going to cost you work in there.

That if you'll get sense of that and the price is going to go up because if you're making a profit but to survive to pass along and soon that works its way to the cost of avocado and snow tires, everything So we got your question.

I liked fuel prices jump by that works into consumer prices.

Pretty quickly.

>> Yeah, it?

No.

Go ahead.

Yeah, it does that in very, very quickly to to consumer prices and where, you know, it's a fundamental cost of >> moving things and you throw out on top of the Exxon Mobil plant last week being down for for 7 days.

That supplies almost 78% of the Midwest fuel supply on top of the global markets.

You mentioned earlier, Mark, is it's just a you know, it's it's almost a comedy of errors a lot of ways that keeps creating this scenario.

And we're seeing eye as these will be prices ever seen history.

>> And mark, you know, President Trump has set out to cast blame on energy facilities hit as part of the Russia-Ukraine war for the increase.

He wrote on the truth Social last week.

The Worlds Diesel price rises mostly caused by the Russia-Ukraine war, not Iran.

What's your reaction to that statement?

>> I would with a mostly I mean, it is was putting it like trying to get goods from where the remains were.

There we were there you see United States, but it really isn't.

It is a worldwide market and worldwide market for crude is very expensive.

And that's the again, the major input into diesel fuel.

Certainly Russia is a big producer diesel fuel big freeze of oil be refined.

Lot of these only use a lot easily sell to your and Ukraine is making life tough for a show with their energy sector.

But I think that isn't that's not as Siro contribution to.

The big thing is just the cost of oil Ponce.

Leaving the ball.

Seeing that.

You see it for gasoline.

Use it for years.

The cost of a barrel.

And that's the big Costa.

That's a big sources.

Cause stress.

>> They met.

Are there any types of relief you would like to see whether from the Trump administration from the state of Illinois for truck drivers.

>> Well, we we always encourage a state of Illinois has some higher fuel taxes in the nation.

We have a road fund that is very, very well funded.

The state has the ability and our governor has the ability to.

But more than just a pause on and increase.

But actually slow down the motor fuel tax for a while to help.

>> Relieve a little bit of that pressure that we're seeing, I think without much of a detriment to the state of Illinois, the Legislature has ability to do so and we'd love to be able to see them step out make some changes in the short term.

Not only how our industry, but to help everyone in the state of Illinois is again.

This is the fundamental price everything.

Everything you buy shows up on a truck one way or another.

And diesel fuel weighs so much into what you're going to pay for your groceries and Thanksgiving and your Christmas presents.

This is going to have a profound effect because when prices go up, they don't go down as quickly as they go up.

No matter how you do And, you in some sense, everyone's everyone's feeling it.

I do want to ask you at the rise and diesel prices comes after the Illinois Tollway board approved.

>> A 30% commercial vehicle toll increase.

That increase goal goes into effect next year in January.

What would be the effects of record high diesel costs combining with the toll increase.

>> You're looking at just more cost to deliver goods to the people Chicago.

Chicago Land area.

That wasn't there a few months ago.

And, you know, you continue to compound these things and people are going to eventually say I've had >> And mark, at what point could we see these prices come down?

>> That is a very tricky question.

The margin between what oil costs and diesel costs really spread.

I think some of us are finding I believe is remarkably don't quite know what that is.

And as certain level prices almost as high when Russia invaded Ukraine a big It came down fairly quickly.

This one seems to be much more.

Persistent that I think that people are always for a long time to come.

We're going to be quite concerned about whether one will continue to flow through the various streets.

And that is that sort of put the risk premium on on everything that will be there a higher price?

Because we don't know when solely that happen get turned off.

As I was pretty I think it net flicks.

Movies are so have a hard thinking want to buy that doesn't come on a truck.

And yes, everything's up and I know what get paid what things cost.

And so many the only important thing he'd been reason wages went so they can maintain the lifestyle.

then a living last few years of this can definitely Martin, back to Everyone this is deft.

This definitely can affect every we're going to have to