Price jumps 10.4 cents to put the national average at $4.059 for diesel

| Monday, April 14, 2008

After experiencing a drop of almost a penny a week ago, the cost of diesel skyrocketed 10.4 cents this past week, putting the national average at $4.059 per gallon this past week, the U.S. Energy Information Administration is reporting on Monday, April 14.

This is an increase of $1.182 a gallon from this same time period in 2007.

On the EIA Web site, the agency has included a link to the OOIDA Web site on how to calculate and implement a fuel surcharge. Click here and then scroll down to the green header “Fuel Surcharges” to find the OOIDA link.

Seven of the nine regions experienced a jump of at least 10 cents or more per gallon, while all regions are reporting fuel averages above the $4 mark. A week ago, only five regions were reporting diesel averages above $4 a gallon.

The West Coast region reported the highest spike – up 12.7 cents – to put the cost at $4.186 a gallon for diesel. The Central Atlantic region reported an increase of 12.6 cents per gallon to average $4.272 for diesel.

The New England region jumped 11.8 cents a gallon to put the price at $4.239, while the California region experienced an increase of 11.6 cents this week to average $4.234 a gallon.

The East Coast region increased 11 cents to put the price at $4.137 for diesel, while the Lower Atlantic region saw an increase of 10.2 cents to $4.052 a gallon.

The Rocky Mountain and the Midwest regions reported the lowest increases this past week. The increase for a gallon of fuel rose 6.4 cents a gallon to $4.043 in the Rocky Mountain region, while the cost increased 9.4 cents a gallon to $4.025 in the Midwest region.

Some truckers have been heading south of the border to fuel up because diesel there was averaging around $2.07 a gallon on April 10, according to The Monitor newspaper in McAllen, TX.

According to The Monitor, Mexico-owned oil company Pemex distributes gasoline and diesel. Diesel prices are set by the government. On top of the diesel price controls, the Mexican government also grants commercial motor carriers a 20 percent discount. Other drivers pay about $2.45 a gallon.

Mexican diesel also costs less to produce because it doesn’t have to meet the same environmental standards as U.S. fuel.

– By Clarissa Kell-Holland, staff writer
clarissa_kell-holland@landlinemag.com

Comments