Diesel prices set records as national average hits $5.16 a gallon

GASBUDDY (WANE) The national average price for a gallon of diesel fuel reached $5.16 per gallon according to GasBuddy, eclipsing the previous high of $5.15 set on March 10. The price gap between a gallon of regular unleaded and diesel also set a new record; diesel prices are now a dollar more than gasoline prices. The previous record difference of 98 cents per gallon was set in November 2008.

“While gasoline prices get a lot of attention, diesel, which is basically the fuel that displaces the
economy, quietly surpassed its recent record high as distillate stocks, which include
diesel and jet fuel, fell to their lowest level in years,” said Patrick De Haan, head of
petroleum analysis at GasBuddy. “If distillate inventories drop another five million barrels,
which is less than 5%, they will be at their lowest level for almost 20 years, which aggravates
the problem. There is no quick fix as the economy has experienced a robust recovery,
compounded by Russia’s war on Ukraine as the West shuts down Russian oil.

Diesel and gasoline prices reached record highs in early to mid-March, mainly due to
Russia’s war against Ukraine and the response with sanctions on Russian energy. The recent
The resurgence in diesel prices can be attributed to the continued worsening of the situation and
the fall in inventories of oil and refined products, such as diesel, as well as the recovery in demand
goods move across the country, much of it diesel-powered in semi-trucks, trains
and ships.

Diesel prices in the North East are likely to rise above any other region due to the loss of refining
capacity resulting from both Covid-induced shutdowns and a 2019 fire at Philadelphia Energy
Solutions Refinery in 2019. Together these issues caused the loss of nearly half a million
barrels in refining capacity. Diesel prices are likely to remain at a high price compared to
as imbalances persist, however, refiners are likely adjusting yields to produce as much
diesel and jet fuel. The economy favors the production of these refined products and refiners hunt
higher market value of these fuels.

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