Although analysts couldn’t seem to agree on the reasons, the price of diesel fuel continued in the direction it has gone for the last 11 weeks — up.
The Department of Energy reported Aug. 23 that the national average price for a gallon was $1.186. It represented an 0.8-cent increase from the Aug. 16 cost of $1.178, which was the highest price since Dec. 1, 1997.
Diesel prices have risen every week since June 7. The current cost is almost 25% higher than the 95.3 cents a gallon recorded on Feb. 22, when the average reached a historic low.
Analysts continue to blame the rapid price rise on the success of the Organization of Petroleum Exporting Countries to comply with goals to cut crude oil production. Also cited as a cause was increasing demand from the recovering Asian economies.
Last week, a pipeline explosion in Texas was said to have driven up diesel prices in the Midwest (8-23, p. 1). Since then, other problems were cited, including the earthquake in Turkey, the impact of Hurricane Bret, a fire at a BP Amoco fluid catalytic cracker in Texas, unrest in Nigeria as well as continuing difficulties at some California refineries.
Diego Saltes, an analyst for the Economics and Statistical Analysis Department of American Trucking Associations, said he did not think these difficulties had significant impact.
For the full story, see the August 30 print edition of Transport Topics. Subscribe today.
