Lumber mill hit by diesel spike

A Kentucky sawmill that was already losing money on tariffs says diesel jumped 40% to 50% in eight weeks, turning a trade problem into a fuel problem almost overnight. Ray White of Harold White Lumber in Rowan County said the mill now pays more than $5 a gallon in Kentucky and more than $6 a gallon out of state. (spectrumnews1.com) That matters because a sawmill does not just burn fuel in one truck. White said more than three dozen mill vehicles, including forklifts and trucks, run on diesel, so a jump from about $3.60 to above $6 hits nearly every board before it leaves the yard. (spectrumnews1.com) The state backdrop is ugly too. Spectrum reported Kentucky diesel at $5.34 a gallon on April 8, 2026, which was only 50 cents below the state’s 2022 record of $5.85. (spectrumnews1.com) National numbers show the same surge. Triple A listed the U.S. diesel average at $5.670 on April 11, 2026, up from $4.830 a month earlier, and the U.S. Energy Information Administration put the weekly national average at $5.643 for April 6, 2026. (gasprices.aaa.com) (eia.gov) The fuel spike is tied to a wider oil shock, not to anything specific inside Kentucky. Spectrum’s Kentucky coverage linked the jump to the war involving the United States, Israel, and Iran, while Argus Media said the Iran conflict pushed distillate prices higher and reshaped Gulf Coast diesel markets. (spectrumnews1.com) (argusmedia.com) Lumber is especially exposed because wood is heavy, low-margin freight. A board can be cut in eastern Kentucky, hauled to a kiln, moved to a wholesaler, and then trucked again to a job site, so each diesel jump gets layered into the final price. This is an inference from how mills and trucking costs work, and it fits White’s description of diesel hitting both yard equipment and over-the-road transport. (spectrumnews1.com 1) (spectrumnews1.com 2) The mill was not starting from a healthy baseline. White told Spectrum in October 2025 that President Donald Trump’s tariff policies had cut into profits and that the industry was often losing money, even before fuel became the next hit. (spectrumnews1.com) That tariff pressure has deep roots in the U.S.-Canada softwood fight. A Congressional Research Service report says the United States reimposed antidumping and countervailing duties on Canadian softwood lumber in 2017, and it notes additional 2025 tariffs on Canadian goods and other wood-related imports. (congress.gov) (international.gc.ca) Harold White Lumber is not a giant national chain that can hide swings like this inside a huge balance sheet. The Morehead company dates to 1968, and Kentucky business records list it as an active Rowan County forestry company with 20 to 99 employees. (millerwoodtradepub.com) (sosbes.sos.ky.gov) For anyone pricing decks, framing, or remodeling work this spring, the takeaway is simple: wood costs can now move for two separate reasons at once. Tariffs change what mills pay for trade, and diesel changes what it costs to move every log, pallet, and finished load down the road. (spectrumnews1.com) (eia.gov)