The weekly national average price for a gallon of diesel fell just over 10 cents over the past week to $5.021, according to the American Automobile Association (AAA). However, diesel retail prices remain high, suggesting that there is still a long way to go before diesel prices start to stabilize.
Diesel prices fall, but remain high
The current average diesel fuel per gallon is 50 cents less than a month ago and nearly $2 more than it was last year when it was $3.297.
Despite high diesel prices at pumping stations, the diesel futures market is showing signs of strength, with retail diesel prices falling for an eighth straight week. Compared with natural gas prices, the national average diesel price has slowly stabilized. Natural gas prices have now fallen below $4 from an all-time high of $5.016 in June, 77 cents below $3.184 a year ago.
RIPPLE EFFECT ACROSS INDUSTRY
Nationwide, the highest average price for diesel fuel in California is $6.232 , while the lowest average price in Texas was $4.523. Nationally, a gallon of diesel in 23 states exceeds the national average of $5.021. Diesel prices were the highest in the nation on June 19, with the average retail price of a gallon of diesel at $5.816.
While diesel prices have fallen in recent weeks, California, Hawaii, Oregon and Washington continue to see diesel prices above the $5.50 threshold. Diesel and natural gas prices all fell slightly in Hawaii, California and Nevada. While Texas, Oklahoma, Kansas, Missouri, Louisiana and Arkansas all saw diesel prices below $4.70.
High diesel prices affect us all in some way, as diesel fuel goes from trucking and freight to the construction industry. When these industries pay more for their fuel, the cost is passed on to customers, affecting the economy, driving inflation and squeezing budgets and profits.
Fuel prices are expected to rise and continue to fall
According to the Consumer Price Index (CPI), the energy index continues to fall after 6 It fell 4.6% in July after rising 7.5% in the month. After rising 11.2% in June, the gasoline index fell 7.7% in the month. The Energy Information Administration (EIA) forecasts that average retail diesel prices in the third quarter of 2022 could be as low as $4.39 a gallon in the fourth quarter of this year, further reinforcing signs of continued declines in fuel prices.
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