Diesel Prices Rise Yet Again

The national average price of diesel fuel rose 0.8 cents to $1.194 per gallon on Aug. 30, marking the 12th straight week of increases.

Analysts agreed that the most important factor behind the increases that have put prices at their highest level since Nov. 17, 1997, is the discipline shown by members of the Organization of Petroleum Exporting Countries in limiting oil supply.

The cartel’s members, meeting in late August, announced plans to keep production quotas in place until March.

The current average price level is 24 cents higher than it was six months ago; the cost of a gallon was at a historic low of 95.3 cents on Feb. 22.

If OPEC continues to be successful in keeping its production quotas intact, oil prices may continue to rise.

“I think prices may fall a bit by Columbus Day,” said Tom Kloza, editorial director of the Oil Price Information Service in Rockville, Md. “But they will be higher by Christmas Day.”

For the full story, see the Sept. 6 print edition of Transport Topics. Subscribe today.

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