The weekly national average price for a gallon of diesel fell just over 10 cents last week, reaching $5,021, according to the American Automobile Association (AAA). However, retail diesel prices remain high, indicating that there is still a long way to go before diesel prices stabilize.
Diesel price down, but remains high
The current average gallon of diesel fuel remains 50 cents lower than it was a month ago and nearly $2 more than this time last year, which was $3,297.
Despite the high price of diesel at the pump, the diesel futures market is showing signs of strength, with retail diesel prices falling for the eighth consecutive week. The national average diesel prices in comparison with the gas price are slowly stabilizing. Gas prices are currently below $4 from a record high of $5,016 in June and 77 cents below the price tag of $3,184 a year ago.
Ripple effect in all sectors
Nationally, the highest average price for diesel fuel was $6,232 in California, while the lowest average was $4,523 in the state of Texas. Across the country, 23 states saw a gallon of diesel at the pump exceed the national average of $5,021. June 19 saw the highest diesel price in the entire country, with an average retail price for a gallon of diesel of $5,816.
Despite the declines in diesel prices in recent weeks, diesel prices in California, Hawaii, Oregon and Washington continue to exceed the $5.50 threshold. Hawaii, California and Nevada all saw modest declines in the price of diesel and gas. While Texas, Oklahoma, Kansas, Missouri, Louisiana and Arkansas have all seen diesel prices drop to less than $4.70.
High diesel prices affect all of us in one way or another, as diesel fuels everything from trucks and freight to the construction industry. When these industries pay more for their fuel, the costs are passed on to customers who ripple through the economy, driving inflation and pushing budgets and bottom line.
Fuel prices are expected to continue to fall
According to the Consumer Price Index (CPI), the energy index fell 4.6% in July, after rising 7.5 percent in June. The gasoline index fell 7.7 percent during the month, after rising 11.2 percent in June. Indications of an ongoing cut in fuel prices are further bolstered as the Energy Information Administration (EIA) forecasts that average retail diesel prices in Q3 2022 could fall to $4.39 a gallon in Q4 this year.
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This post Diesel price dropped for 8th week in a row, but remains high was original published at “https://smallbiztrends.com/2022/08/diesel-price-down-august-16-2022.html”