Record Prices: Diesel prices reach two all-time highs in one day
MADISON, Wis. (WMTV) - Diesel prices are on the rise again, and the latest survey by GasBuddy finds the vital fuel setting two records in the same day. On Friday, the company reported diesel prices have reached an all-time high, at $5.16/gallon, eclipsing the previous record set just last month.
Not only is the price itself higher than ever, so is the gap between diesel and conventional gasoline, GasBuddy discovered. Researchers found it now costs a full dollar more per gallon to fill a diesel tank than it does for a gas engine. The previous highwater mark of 98 cents was set in November 2008, during the depths of the Great Recession.
GasBuddy’s head of petroleum analysis Patrick de Haan pointed out that, while gas prices take up the lion’s share of the headlines - because that’s what the average driver uses - it is diesel that fuels the economy, as it is used in many commercial vehicles. He noted that inventories of distillates, which include diesel, heating oil, and jet fuel, have fallen to their lowest levels in years.
“Should distillate inventories fall another five million barrels, which is less than five percent, they will be at their lowest level in nearly 20 years, compounding the problem,” he explained, adding that the economic rebound – as well as the war in Ukraine – makes a decline that much harder.
Beyond the war, which drove last month’s records for both diesel and gasoline, this new increase can also be attributed to the rising consumer demand for goods, which, in turn, means more items need to be shipped and those dwindling supplies.
Its experts expect the northeastern part of the U.S. will be especially affected because of COVID-19 shutdowns and a 2019 fire at Philadelphia Energy Solutions.
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