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This marks the first time since early December 2023 that prices have exceeded $4.
During the first month of 2024, diesel prices remained steady or saw slight increases. However, during the initial week of February 12th, there was a significant increase in average prices across the United States. According to data from the Energy Administration, the average price per gallon of diesel this week stands at $4.109. While this price is 33 cents lower than the same time last year, it represents an increase of 21 cents compared to the previous week and marks the first time since early December 2023 that prices have exceeded $4.
This increase was reflected in all regions and subregions of the country, with price hikes ranging from 2 to 30 cents per gallon. The subregions of New England and the Central Atlantic experienced the smallest increases, at 2 and 4 cents respectively, while California and the Rocky Mountains saw increases of 12 and 15 cents, the lowest at the regional level.
The average prices per gallon of diesel, according to the EIA, are as follows:
- Central Atlantic – $4.317
- Lower Atlantic – $4.143
- Midwest – $4.042
- Gulf Coast – $3.865
- Rocky Mountains – $3.805
- West Coast – $4.723
- East Coast – $4.201
The increases seen this week, according to expert opinions, may be attributed to the decline in oil production in the United States. According to the latest Short-Term Energy Outlook report from the EIA, oil production fell to 12.6 million barrels per day in January due to adverse weather conditions.
The report also notes that tensions in the Red Sea could contribute to increases in crude oil prices, potentially pushing them above $80 per barrel. Despite these forecasts, the report suggests that retail diesel prices are expected to remain in line with the annual average as 2024 progresses.
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