Diesel Price Increase In Winter And Decrease By Summer

Diesel prices continue to rise throughout the pandemic. What to expect in the coming winter season – read below.

Diesel prices have increased 2 cents per gallon since October. The reason for the rise in fuel costs is the price of raw oil. The Department of Energy reported in its November Short-term Energy Outlook that spot prices for Brent oil are in average $ 84 per barrel in October 2021, up $ 9 per barrel than in September and $ 43 per barrel higher than in October 2020.

Tom Kloza, head of energy analysis at the Oil Price Information Service (OPIS), declared that the severity of the approaching winter will have a big impact on diesel prices in the next few months.

The last time raw oil prices were so high – about seven or eight years ago – diesel prices were on the rise, but gasoline prices were much lower than they are today, Kloza said.

Moreover, the wages of workers at truck stops and gas stations are now much higher than they were before, which also increases the cost of fuel.

Kloza believes that over the next five months, fluctuations in diesel prices will be greater than fluctuations in gasoline prices. He predicts the diesel cost will rise to $ 4 a gallon.

In California, which he says is “marching to the beat of its own drum,” prices are likely to be around $ 5 a gallon.

The Department of Energy predicts a steady decline in diesel prices throughout 2022, after hitting a plateau in the fourth quarter of 2021. The national average road diesel prices are expected to be around $ 3,39 per gallon in the first quarter of 2022, after dropping to $ 3,13 per gallon countrywide by the end of next year.