Diesel Fuel Prices Continue to Climb

Diesel fuel prices continued to climb across the United States, with the national average getting a boost from even higher increases in California.

Californians saw such sizable increments in the price of diesel that some truckers are considering surcharges and asking for relief from state environmental restrictions.

The national average price on March 29 was $1.046 a gallon — 9.4% higher than at the beginning of the month, but still more than 2 cents lower than the $1.068 of a year ago.

According to the Bureau of Labor Statistics, the Feb. 22 national average price of 95.3 cents a gallon — adjusted for inflation — was the lowest price since 1947.

California prices continue to inflate the national average. At $1.385, the state’s diesel cost 26% more than at the beginning of March, when it stood at $1.097, and 14.4% above the $1.211 at the end of March 1998.

If California figures werer emoved, the nationwide average would be $1.023.

Supply was cut drastically in California by a fire at one refinery and the temporary closing of another. The state’s prices are generally higher than the rest of the U.S. due to requirements that fuel sold there be lower in sulfur and aromatics to reduce emissions.

Some California truckers are looking at the possibility of activating fuel surcharges written into their contracts with customers. However, there was reluctance to do so.

“The problem is some of these nationwide companies are taking a look at total nationwide fuel prices for all over the country,” said Albert J. Nunes, president of A.C. Trucking in Manteca, Calif.

For the full story, see the April 5 print edition of Transport Topics. Subscribe today.