Diesel Prices Hit Record Highs
Friday October 29, 2004
Gasoline prices (regular, not premium) have increased 46 cents a gallon compared to a year ago; however, diesel has jumped 72 cents a gallon. This week the (unadusted for inflation) average price for diesel in the US hit a record $2.212 per gallon. This increase in diesel fuel prices has largely been ignored in mainstream media news reports.
I watch diesel prices because I drive a diesel automobile when I'm not riding my motorcycle; in my market, diesel is up 80.7 cents since last year. I worry about diesel prices because more than two-thirds of this country's freight travels by truck; only about 15% travels by rail.
Crude oil has been trading at about $55 a barrel, although there was a slight dip this week. According to MSN Money, since 10 September, gasoline prices have increased 10 cents per gallon, considerably short of the crude equivalent of 29 cents. Diesel consumers are feeling the full brunt of the increase.
One reason diesel prices have risen faster than gas prices is that the national distillate fuel suppy -- which includes diesel as well as heating oil -- has dropped five weeks in a row. Almost half of the US supply of gasoline originates in the Gulf Coast region; weather related issues are cited as the reason for reduced inventory.
See also DOE Primer on Gasoline Prices
I watch diesel prices because I drive a diesel automobile when I'm not riding my motorcycle; in my market, diesel is up 80.7 cents since last year. I worry about diesel prices because more than two-thirds of this country's freight travels by truck; only about 15% travels by rail.
Crude oil has been trading at about $55 a barrel, although there was a slight dip this week. According to MSN Money, since 10 September, gasoline prices have increased 10 cents per gallon, considerably short of the crude equivalent of 29 cents. Diesel consumers are feeling the full brunt of the increase.
One reason diesel prices have risen faster than gas prices is that the national distillate fuel suppy -- which includes diesel as well as heating oil -- has dropped five weeks in a row. Almost half of the US supply of gasoline originates in the Gulf Coast region; weather related issues are cited as the reason for reduced inventory.
See also DOE Primer on Gasoline Prices
Comments
MAYBE OUR GOVERMENT IS FAILING US IN KNOWING THE GIANT PROFITS OIL COS. ARE MAKING. WHAT HAS HAPPENED TO THE MONOPLY LAWS AND ACTS THAT THE OIL COMPANIES ARE DOING TO OUR COUNTRY AND THE POLITICIANS ARE DOING TOO? ALL I HEAR TO CALM THE ANGER IS MAYBE WE NEED TO THINK ABOUT A WINDFALL TAX. WHAT A LAUGH, AS THIS IS ALL WE SEE THEM DOING IS GIVING US LIP SERVICE.
hello, I would really like o know more about why diesel is so much? This is a total rip off. Diesel is the lowest costing part of a barrel of oil to produce, besides asphalt. We have been paying way more for it before, and now in Calif., its at 1,oo a gallon more than gas!
I am hoping and trying to find a reporter that will really show the us people that it is affecting ALL OF US, not just people like me that drive diesel vw’s, but towards all we do, shipping by truck ect, please do what you can to help dig up the truth.
Barry Johnson
seal beach calf
I would like to see a story on the affect of the cost of diesel on truck drivers and their family’s. My husband is an owner operator and since diesel has gone to between 3.99 to 4.31 a gal we have been strugling to make our truck payment and pay bills. Someone needs to tell the oil co’s enough is enough or they will not have anyone left to transport their oil or goods for that matter. And the idea of going slower does not eleveate the problem just prolongs it.