Diesel on the rise; gas hits $4.50 at one station

| Thursday, April 20, 2006

Diesel prices have already surpassed government predictions for the summer and show no signs of slowing down.

The U.S. Energy Information Administration has predicted an average price of $2.62 per gallon for diesel this summer, but ProMiles reported an average of 2.849 for Thursday, April 20, up more than 2 cents from the previous day.

Diesel is already broaching the $3 mark in some areas. New York, Connecticut and California were all just above $3 per gallon, according to ProMiles.

By contrast, the lowest price reported by ProMiles was $2.677 in Oregon.

Meanwhile, AAA was reporting an average of $2.841 per gallon for April 20, up less than 2 cents from the previous day.

The auto club also reported prices above the $3 mark in several areas, including Connecticut, New York and California. The highest, however, was $3.107 per gallon in Arizona.

Gasoline isn’t faring any better. In fact, it’s worse in some areas. The New York Daily News reported one station in Brooklyn Heights – near the Brooklyn Bridge – was selling premium gasoline for $4.50 per gallon on Wednesday, April 19.Regular wasn’t much better, at $4.14 for cash or $4.26 for credit.

The manager of the station told The Daily News that he had no choice but to raise the prices because the station’s holding tanks are small and require frequent deliveries.

The EIA said in its weekly report – issued on Wednesday, April 19 – that it expects fuel prices to stabilize by summer as several key refineries on the Gulf Coast that were damaged by Hurricane Katrina are expected to return to full production capacity in the coming weeks.

Comments