business
His Business Was Tough. Diesel Prices Made It Impossible
A Southern California trucking owner filed for bankruptcy as diesel prices made his small business impossible to keep running.
Key points
- At least 40 trucking companies nationwide filed for bankruptcy in September, according to BKwire.
- Diesel in Southern California rose from over $5 a gallon to $6 and $7 after the war in Iran started.
- Logistics experts and bankruptcy lawyers say record diesel prices were a contributing factor, especially for small operators.
Why it matters. Record diesel prices are a contributing factor in trucking bankruptcies, especially for small operators, logistics experts and bankruptcy lawyers say.
In September, at least 40 trucking companies nationwide filed for bankruptcy, a 38 percent rise from a year earlier, according to BKwire, a bankruptcy data analytics firm. Truckers are paying around 70 percent more per gallon for diesel than a year ago, after the war in Iran began. Bankruptcy lawyer David Cruz said that when freight rates do not follow fuel costs, the difference comes straight out of owners' pockets.
Latest updates
His Business Was Tough. Diesel Prices Made It Impossible
For small trucking firms operating with little margin for error, high fuel costs can make the difference between survival and bankruptcy. You have a preview view of this article while we are checking your access. When we have confirmed access, the full article content will load. For small trucking firms operating with little margin for error, high fuel costs can make the difference between survival and bankruptcy. Credit... Listen · 9:31 min Nov. 3, 2026 Once a week for a year, Luis Escalante spread envelopes across his kitchen table, sorting them into piles of past-due bills. Between costly repairs on his semi trucks and increased competition, he was struggling to keep his small Southern California trucking company profitable. Then the war in Iran started. Diesel prices in the state jumped well over $5 a gallon. Then $6 and $7. Paying thousands of dollars more for fuel every month, Mr. Escalante, 47, could no longer afford the high-interest loans buoying his business, and he reluctantly accepted the last-ditch plan he had long dreaded: filing for bankruptcy. “I had to be honest with myself,” he said. “There was no way to keep going.” Almost all industries have faced downstream impacts from the war, but the high price of diesel has been particularly hard for farmers, who use it to power machinery, and truckers, who are paying around 70 percent more per gallon than they were a y.