Diesel Prices On Upswing Again

In a continuation of the yo-yo-like gyrations that many analysts said were over, the national average price of diesel fuel has risen 2.3 cents a gallon over the past two weeks, after dropping 2.4 cents over the previous four weeks.

On June 21, the price stood at $1.082 a gallon, 1.4 cents above the previous week’s level of $1.068 and 0.1 cent below the level on May 10, according to the Department of Energy.

According to estimates by the Economics and Statistics Group of the American Trucking Associations, a 1-cent increase in the retail price of diesel fuel results in $1.5 million in additional cost each week to the trucking industry.

Just five weeks ago, analysts had been predicting an end to the price volatility exhibited throughout much of this year – as diesel prices seemed to be hovering below the $1.08 a gallon mark (5-10, p. 5).

Diesel fuel prices have been fluctuating since the beginning of the year, when a steady decline, begun in the fall of 1998, sent prices to a historic low of 95.3 cents a gallon. After that, the average rose steadily, reaching $1.084 on April 12.

After that, prices dropped 0.6 cent, then rose 0.5 cent, then dropped 2.4 cents, before the current rise.

For the full story, see the June 28 print edition of Transport Topics. Subscribe today.