$8 Diesel and Rising: CALR Calls for Immediate California Fuel Relief

California recovery agencies face fuel costs far beyond the national average, and CALR says a one-size-fits-all surcharge is no longer enough.

The time for action is now, and California’s repossession industry is approaching a make-or-break situation. Fuel prices have risen dramatically across the country, but once again California operators are facing costs far beyond those experienced in most other states.

Current diesel prices illustrate the disparity. California diesel is averaging approximately $8.35 per gallon, compared with approximately $6.40 nationally, $6.39 in Arizona, and $5.96 in Texas. In parts of the Los Angeles market, agencies are seeing pump prices as high as $8.69 per gallon.

That means a California recovery agency can be paying nearly $2.00 to $3.00 more per gallon than an agency operating elsewhere in the country.

For an industry that depends on trucks being on the road every day, that difference is enormous.

California Cannot Be Priced Like the Rest of the Country

CALR appreciates the lenders, forwarders, and industry partners who have already recognized the fuel crisis and offered some form of fuel surcharge or temporary relief.

However, the reality is that much of the relief currently being offered does not come close to addressing the actual cost of operating in California.

A flat national fuel surcharge does not solve a regional problem of this magnitude.

California requires California-specific fuel relief that reflects the actual cost of diesel in this state and adjusts as fuel prices change.

CALR is calling on lenders, forwarders, and industry partners to establish a transparent California fuel-relief mechanism tied to an objective, publicly available fuel benchmark, such as a recognized California diesel index or statewide average.

The concept should be simple: when California diesel prices rise materially above normal levels, relief should increase accordingly. When fuel prices decline, the relief should adjust downward as well.

This creates a transparent and measurable framework without requiring agencies and clients to renegotiate the issue every time fuel prices move.

Each recovery agency must continue to independently determine its own pricing, costs, and contractual terms based on its individual business circumstances.

This Is About Maintaining Coverage

This is not about agencies using a fuel crisis to increase margins. It is about keeping recovery trucks on the road.

California agencies must continue paying for fuel, insurance, wages, equipment, facilities, compliance, maintenance, and the many other costs required to operate legally and professionally in this state.

When one of the largest variable expenses in our industry increases by this magnitude, something has to adjust.

If reimbursement does not keep pace with the actual cost of performing the work, agencies may be forced to reduce coverage, reduce the number of trucks operating in certain areas, or reconsider assignments that are no longer economically sustainable.

None of those outcomes benefit lenders, forwarders, agencies, or consumers.

The Larger Conversation Can Happen Tomorrow. Relief Is Needed Today.

We recognize that pricing in the repossession industry is a larger conversation. CALR intends to continue advocating for sustainable compensation that reflects the true cost of operating a licensed recovery agency in California.

But agencies cannot wait for that larger conversation to be resolved before addressing today’s fuel costs.

The problem is happening now. The relief needs to happen now.

CALR is asking lenders, forwarders, and other industry partners to immediately reevaluate their California fuel policies and implement meaningful California-specific relief tied to actual diesel prices.

California recovery agencies have continued to show up, put trucks on the road, and service their clients through extraordinary increases in the cost of doing business.

We are asking our industry partners to recognize that commitment and respond with meaningful action.

The time for action is now.

About CALR

The purpose of CALR as an association is to strengthen understanding between licensed repossessors, law enforcement, financial institutions, regulatory agencies and the consumer, while offering continued education.

Mission Statement:

CALR is comprised of licensed members operating repossession agencies within the State of California and affiliate members outside California. The purpose of this Association is to strengthen understanding between licensed repossessors, law enforcement, financial institutions, regulatory agencies and the consumer. CALR also provides safety training to its members, continuing education in the field of public relations, business principles and professionalism via newsletters, special bulletins, seminars and conventions.

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California Association of Licensed Repossessors

P.O. Box 371368

San Diego, CA 92137-1368

Phone (619) 265-0525 / Fax: (619) 265-8659

Email: info@calr.org