In the week ending March 8, U.S. average diesel fuel prices increased 7 cents to reach $3.143/gallon.
Last week average diesel prices surpassed $3/gallon for the first time since January 2020. Over the past five weeks, prices have increased more than 40 cents/gallon.
According to the Department of Energy’s Energy Information Administration (EIA), diesel fuel prices have increased because of rising crude oil prices and supply chain disruptions. EIA’s latest Short-Term Energy Outlook reports crude prices increased $8/barrel in February.
Higher prices reflect expectations oil demand will rise globally. Higher prices also reflect ongoing petroleum supply limitations by overseas suppliers. In addition, disruptions to petroleum supply from extreme U.S. winter weather (notably, in Texas) put upward pressure on crude oil prices in February.