U.S. diesel average up more than 22 cents; is there an end in sight?

Shock at the pump: diesel up 22.6 cents from a week ago

The Trucker News Services

5/27/2008

U.S. average on-highway diesel prices shot up yet again this week, up 22.6 cents from a week ago, likely leaving drivers wondering if there’s an end in sight.

In California, a gallon of diesel was up 29 cents, at $5.027, compared with $4.737 the week before, the Energy Information Administration (EIA) reported.

For the West Coast reporting area as a whole, diesel prices were up 27.3 cents a gallon to $4.883, compared with $4.610 a gallon the week ended May 19.

East Coast region users also were encountering sticker shock as on-highway diesel there was reported at 23.5 cents more this week, up from $4.544 a week ago to $4.779.

Diesel is spiking more and faster than gasoline. At present, 61 percent of retail diesel is spent on the cost of crude; 21 percent is the cost of refining; 7 percent goes to distribution and marketing and 11 percent is taken out in taxes.

However, last week's surge in oil prices drove gasoline prices sharply higher just before the Memorial Day weekend. But those increases appear to be tapering off, according to a report filed by The Associated Press. The average national price of a gallon of regular gas rose only 0.1 cent overnight to a record $3.937, according to a survey of stations by AAA and the Oil Price Information Service.

For more details on diesel prices, see the chart below.