Monday, January 15, 2018

Diesel prices take sharp turn upward, rise 6 cents to $2.48


Monday, December 5, 2016
by THE TRUCKER NEWS SERVICES

The week ending December 5 marked the first time in many weeks that the price was higher than the comparable week one year ago. (The Trucker file photo)
The week ending December 5 marked the first time in many weeks that the price was higher than the comparable week one year ago. (The Trucker file photo)

WASHINGTON — Egged on by the most-costly oil since July 2015, the average on-highway price of a gallon of diesel shot up 6 cents to $2.48 for the week ending December 5, according to the Energy Information Administration of the Department of Energy.

Oil prices rose Monday for the fourth straight day. closing at $51.79.

The price of oil has surged since OPEC countries finalized a deal that will trim oil production starting in January.

Crude oil is responsible for 45 percent of the price of a gallon of diesel, according to the EIA.

Taxes are 21 percent, refining 19 percent and distribution and marketing 15 percent.

The 6-cent increase was the largest weekly jump since the week ending March 14, 2016, when the price increased 7.8 cents for $2.099.

It also marked the first time in many, many weeks that the price of a gallon of diesel was more than the comparable week the previous year.

A 4.2-cent drop had brought down the price to $2.379 the comparable week in 2015.

And the disparity will probably remain for quite some time because last year, the cost of diesel was in the midst of a sharp decline that would drop the price below $2 last February when crude oil prices went below $30 a barrel.

As for the week just ended, every region of the country showed an increase in diesel prices, led by a 7.5-cent increase in the Midwest and a 7.1-cent increase along the Gulf Coast.

The smallest increase was in the Rocky Mountain region where the price went up only seven-tenths of a penny.

For the prices by region for the past three weeks, click here.

 

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