Diesel Gas Prices Increase Again

Diesel Gas Prices Increase Again

Diesel Gas Prices Increase Again

Average diesel fuel prices increases to a two-year high back in November of 2010. Now we've seen another increase that has been climbing steadily for the last two months. Diesel fuel reached a new high of $3.294 per gallon in December. In California, the rates were higher than anywhere else in the US, hitting $3.47 per gallon. Now the national average price of diesel fuel has reached $3.43 per gallon, back as high as it was near the end of 2008.

According to the Journal of Commerce, "The gain is part of a trend of rising gasoline and diesel prices tracking the increases in crude oil futures, according to the U.S. Energy Information Administration. From June through September, retail diesel prices remained fairly steady, staying just under $3 per gallon. In the first week of October, they topped $3 and have climbed 43 cents beyond it in the 16 weeks since then. Over the same 16 weeks, crude oil prices increased, from $82.82 per barrel to $89.11 per barrel, a $6.29 increase, on the New York Mercantile Exchange."

The world's demand for crude oil has been increasing, keeping the prices rising. According to the Energy Information Administration (EIA), the global demand has been rising "particularly in non-Organization for Economic Cooperation and Development Asian countries, such as China and India." The EIA "expects continuing tightening of world oil markets over the next two years". The EIA provides monthly price and volume statistics on crude oil and petroleum products at a national, regional and state level.

Projections show that average diesel fuel prices could surpass $3.90 per gallon by September of this year, a prediction that has ocean shipping companies and other transport industry executives on alert. The cost of doing business could continue to rise for some time, affecting ocean freight prices and possibly capacities as well.

The Journal of Commerce also reports that, "The highest regional average price last week was $4.531 per gallon in the West Coast. But New England saw prices surge 4.9 cents to $3.609 per gallon. East Coast prices averaged $3.48 per gallon. The nation's lowest prices were in the Gulf Coast, where diesel climbed just 1.6 cents to $3.382 per gallon. The biggest change was a 3.2 cent jump in the East Coast. The smallest change was an increase of 1.4 cents to $3.388 per gallon in the Rocky Mountains."

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