Soaring U.S. diesel prices slam local communities as fuel costs surge

The surge in diesel prices this year is putting a financial squeeze on schools, farms and small businesses around the U.S. Soaring diesel prices are rippling through the U.S. economy, putting a financial squeeze on schools, farmers and small businesses as their fuel costs spike. Average diesel prices hovered around $6.50 a gallon on Friday, just below their record high of $6.53 on Sept. 22 and up from $3.69 a year ago, according to AAA. That jump is raising the cost of operating school buses and forcing some institutions to scramble for ways to cut costs. Farmers, who rely on diesel to run agricultural machinery, also face sharply higher costs, while enterprises ranging from construction firms to food banks report sharply higher expenses to fuel their vehicles and delivery trucks.

One Georgia food bank said it will spend an extra $100,000 this year on diesel, money that otherwise would have gone to feed families. "That would actually translate to about 122,000 meals that we would be able to provide if we didn't have to spend that on unexpected diesel fuel prices," Kenneth Hill, the supply chain officer for the Atlanta Community Food Bank, told CBS News Atlanta. Georgia diesel prices averaged $6.32 a gallon on Friday, up from $3.54 a year ago, according to AAA. Ranchers are feeling the pinch