EIA reports national diesel average again tops $4 per gallon mark

The national average price per gallon for diesel gasoline saw its seventh straight week of strong gains, according to data issued this week by the Department of Energy’s Energy Information Administration (EIA).  

The national average, for the week of February 28, increased $0.049, to $4.104 per gallon, eclipsing the $4 per gallon marks for the third consecutive week. This comes on the heels of a $0.036-cent increase, to $4.055, for the week of February 21, and a $0.68-cent increase, to $4.019 per gallon, for the week of February 14.

Prior to these last two weeks, the national diesel average had not been above the $4 per gallon mark since the week of March 17, 2014, when it came in at $4.003 per gallon. Prior to that, the national diesel average cracked the $4 per gallon mark the week of March 25, 2013, when it came in at $4.006 per gallon.

Prior to these last three weeks of gains above $4.00 per gallon, the national average increased $0.105 cents, to $3.951, for the week of February 7, 6.6-cent increase, to $3.846, for the week of January 31, a 5.5-cent increase, to $3.780 per gallon, for the week of January 31, and a 6.8-cent increase, to $3.725 per gallon for the week of January 17.

For the week of October 11, 2021, the national diesel average increased 10.9-cents, which represented the highest single increase, since September 4, 2017, which saw a 15.3-cent increase, due to Hurricane Harvey.  

This week’s national diesel average is up $1.032 annually, down from the annual spread of $1.082, for the week of February 21.

West Texas Intermediate Crude oil is currently trading at $100.38 on the New York Mercantile Exchange.

The increase on global oil prices, driven by the ongoing Russia-Ukraine conflict, is looming as a potentially major concern in global energy markets. And it has the potential to impact diesel prices for shippers and carriers.

A Wall Street Journal report noted that motor carriers are feeling the pain at the pump stemming from the conflict, as “Russia’s invasion of Ukraine roils energy markets, sending crude oil prices surging above $100 a barrel.”

And it added that the latest increases came before Russia’s attack on Ukraine disrupted oil flows around the world as the energy industry moved to pre-empt possible U.S. restrictions on Russian exports.

“Shipping companies this week refused to load tankers with the main grade of Russia crude, traders and shipping executives said, triggering a sharp run-up in crude prices before a pullback on Friday,” the report stated.

In its Short-Term Energy Outlook, EIA pegged the 2022 and 2022 averages for WTI crude to come in at $79.35 and $64.48, respectively. For diesel, it said it expects the average prices per gallon to come in at $3.54 and $3.31, for 2022 and 2023, respectively.