Diesel fuel prices hit historic highs this week
The average cost of a gallon of diesel fuel in the country has reached its highest level.
On April 29, diesel fuel prices reached a new average all-time high of $5.16 per gallon. The previous record was set on March 10 at $5.15 per gallon.
“While gasoline prices are getting a lot of attention, diesel, which is the fuel that drives the economy as a whole, has quietly surpassed its recent all-time high as distillate inventories, which include diesel and jet fuel, fell to their lowest ever levels in recent years,” said Patrick De Haan, Head of oil analysis at GasBuddy.
The average price in some states is much higher than the national average. In California, the average price per gallon of diesel on Friday is $6,394, according to AAA data.
“Should distillate inventories fall another five million barrels, which is less than five percent, they will be at their lowest level in nearly 20 years, compounding the problem. There’s no quick solution as the economy has seen a robust turn around, made worse by Russia’s war on Ukraine as the West fences off Russia’s oil,” De Haan added.
The average price in Pennsylvania today is $4.28 a gallon – up from $4.20 a week ago.
Diesel and gasoline prices jumped to record highs in early to mid-March due to sanctions on Russian energy. The recent increase in prices for diesel fuel is explained by the ongoing escalation of the situation and the reduction in stocks of oil and oil products.