As gas prices continue to rise, NASCAR teams like Kaulig Racing are struggling to afford the cost. They are forced to cut back on a number of standard operating procedures to balance their budgets.
Money is tighter than ever, even on the racetrack!
Many NASCAR teams may have to adjust their race schedule for the rest of the season if fuel costs stay the same or keep going up. The panic is starting to set in.
Gas prices are way up.
The average price of gasoline in the United States rose to $4.10 per gallon this week. According to AAA data, that marks a 12-cent increase from the week prior. Some states and cities, like Los Angeles, are much higher. Others states and cities, like rural Ohio, are slightly lower— but not by much.
Gas prices have skyrocketed since the initial US-Israeli strikes on Iran on February 28. They are up more than 35% in just 35 days. Not great!
The massive hike in price is largely rooted in the shutdown of the Strait of Hormuz. The crucial waterway accounts for approximately 20% of the world’s oil transit. It also stems from a slowdown in oil production in the Middle East. These two factors combine for a disastrous outcome.
Crude oil prices continue to rise. Crude oil is refined to make diesel, gasoline and jet fuel. If the cost of crude oil is up, the cost of diesel and gas will follow.
Seasonal demand also contributes to the increase. Warmer weather and travel for spring break leads to higher gasoline consumption. Gas usually costs a few cents more in the spring and summer. This year is especially high because of the geopolitical climate.
California has the highest average price of gasoline in the United States at nearly $6 per gallon. Oklahoma has the least expensive average price at ~$3.30.
The White House issued a statement earlier this week, urging consumers to be patient.
“When Operation Epic Fury is complete, gas prices will plummet back to the multi-year lows American drivers enjoyed before these short-term disruptions. President Trump remains committed to fully unleashing American energy dominance, lowering costs, and putting more money back in the pockets of hardworking American families.”
We’ll see. Only time will tell whether that is true!
NASCAR is struggling with the cost of fuel.
Racing teams set their budget for the new season at the beginning of February, which directly correlates to the amount of travel and the schedule. That was before the strikes on Iran. They did not account for the sudden 35% increase in gas prices. It has already been crippling and will only continue to get worse.
Chase Rice, the president of Kaulig Racing, revealed the impact on his Truck Series team during a conversation with The Morning Drive on SiriusXM. He has had to reevaluate the entire operation.
“’ll tell you an inside story of us. Back in January… we spent a lot of money in fuel running parts here and there, doing this and that. Now we actually have a group text, it’s called the ‘traveling group text’ for Kaulig Racing where we plan our trips accordingly.
If we can wait a day and pick up more stuff in a day, we’ll do that. I was talking to our truck (hauler) drivers and saying, ‘Hey, watch fuel prices to make sure that, since we’re only going to Rockingham, do we need to fill it all the way up?’”
Fortunately for Kaulig, most of the races thus far have been at tracks nearby to its base camp— like Darlington, Rockingham, Bristol and Martinsville. Other teams are forced to travel even further. That obviously requires additional spending. Gas prices will impact how far they can go and how often.
““Will the fuel prices come down? We keep our eyes on that. We look for ways that we can find locations that sell it a little bit cheaper. Every dollar matters with us and in the Truck Series. So this is all costing us a bit more than anticipated… The fuel prices have really put a huge hit into our budget. It is what it is.”
Should the cost of gas not come down soon, we could start to see teams start to pull out of races all together. We are not to that point yet but the season does not end until November so the cost will only continue to add up.