Diesel Prices Fall, Gasoline Rises

As the holiday week opened, diesel prices continued their recent downward trend, while gasoline prices crept back upward.

The Department of Energy's Information Administration reported a nationwide drop of 2.2 cents in the price of a gallon diesel earlier this week. The average price was $3.92 per gallon.

The steepest decrease in diesel and the cheapest overall prices were seen in the Rocky Mountain region, where prices fell 7.5 cents per gallon to rest at $3.79.

The most expensive diesel prices can still be found on the East Coast, specifically in the New England and Central Atlantic regions, where prices are still over the $4-mark.

Kevin Brown, fleet manager at Conley Trucking outside of Buffalo, N.Y., last week said diesel prices were $4.23 per gallon, well above the average reported for the region. "We have had some of the highest prices in New York ... and yet much closer to suppliers than most," he said.

Gasoline prices climbed incrementally across the nation by 0.3 cents to land at $3.26 per gallon. The cheapest gasoline prices can be found in the Gulf Coast region at $3.10 per gallon.

Crude oil, meanwhile jumped up by $2.37 to $90.98 a barrel on the New York Mercantile Exchange yesterday, the highest settlement since Oct. 18, as President Obama and Congress return to Washington today to discuss how to avoid more than $600 billion in expiring tax cuts and mandatory spending cuts scheduled for January -- aka the "fiscal cliff."
Story from truckinginfo.com

Fall of Diesel Prices Slows

While nationwide diesel prices at the pump saw a decrease this week, it was a small one. The average price for a gallon of diesel fell only four-tenths of a cents to $3.967, according to the weekly U.S. Energy Information Administration's Gasoline and Diesel Fuel Update.

Some regions have seen an increase in diesel prices this week, including regions along the East Coast and in the Midwest. Diesel prices jumped the most, 2.3 cents, in the Lower Atlantic region to $3.94 a gallon, which is still below the national average.

Diesel still tops $4 per gallon in the Rocky Mountain Region and on the West Coast. The highest prices for diesel can be found in California, where the average price per gallon is $4.14.

Gasoline prices also continued to decline this week as the nationwide average price per gallon dropped 2 cents to rest at $3.43. Prices did see a slight increase in the Midwest region, 1.3 cents, according to the report, the only region in the U.S. to see an increase in gasoline prices this week.

The Huffington Post reports that the price for benchmark crude closed at its highest point since Oct. 22 at $89.28. Reasons cited for the rise in price of oil are concerns about current unrest between Isreal and Hamas in the Middle East, and - to a lesser degree - the U.S. "fiscal cliff" situation.

Gasoline prices begin to slide – finally

NEW YORK -- Gasoline prices have finally begun their seasonal slide. Better late than never.

The national average retail price has fallen for 10 straight days and is now $3.74 per gallon. That's 13 cents below the fall peak of $3.87 reached on Sept. 14, although still higher than ever for this time of year.

In Tampa, the average price Thursday was $3.60, about 14 cents cheaper than a month ago, according to GasBuddy.com. The Florida average was about $3.67, a 13-cent drop from a month ago.

Gasoline prices typically decline in the fall as refiners switch to cheaper fuel blends and drivers take a break from road trips. This year, a series of refinery and pipeline problems sent gasoline supplies plummeting and prices soaring.

The problems have begun to clear up, though, and prices are responding. Tom Kloza, Chief Oil Analyst at the Oil Price Information Service, predicts drops of 5 cents to 15 cents per week for the next three weeks.

By The Associated Press

Diesel update

Gasoline, Diesel Prices Drop Slightly
This week the price at the pump for a gallon of diesel or a gallon of gasoline decreased marginally from last week.

Although the average price of a gallon of diesel fell nationally, it was by less than 1 cent, according to the U.S. Energy Information Administration's weekly report. Specifically, diesel fell by 0.7 cents to land at an average of $4.08 per gallon.

Although the price of diesel has been falling the past few weeks, the price per gallon is still on average 33 cents above where it was one year ago.

Prices remain highest on the West Coast, which saw a slightly larger decrease at 2.2 cents per gallon. The price for a gallon of diesel on the West Coast is an average of $4.30. The highest prices are seen in California with a gallon of diesel costing on average $4.38.

The price for a gallon of gasoline also fell this week, on average 2.2 cents per gallon nationally to rest at $3.80.

Benchmark crude oil rose 29 cents on Monday to close at $92.48 per barrel, as investors took heart in a report showing U.S. manufacturing activity rose in September for the first time in four months.

Reduced supplies cause gas prices to skyrocket in Tampa area

Gas prices around the Tampa region have reached above $3.60 at many stations, and could creep up further until winter kicks in.

That's up about 25 cents per gallon in the last month.

European sanctions on Iran are curtailing oil supplies, as are disruptions at some West Coast refineries. Some tropical storms also helped push oil up to $92.87 per barrel last week, up $1.47 from a week before.

"Hopefully, retail prices will drop after the Labor Day holiday when demand tends to fall and we switch to a cheaper fuel blend," said AAA Spokeswoman Jessica Brady. That winter blend is less expensive for refineries to produce than summer blends that are tuned to reduce emissions. That switch often cuts 5 to 10 cents from each gallon at the pump.

Nationally, a gallon of regular unleaded gasoline now averages $3.692, up from $3.388 a month ago, but even with last year.

That's thanks to "an onslaught of refinery problems – mainly in the Great Lakes and California," said GasBuddy.com Senior Petroleum Analyst Patrick DeHaan. "While these situations are temporary in nature, it goes to show this nations dependence on domestic refineries."

Story from TBO.com

Diesel, Gasoline Prices Rise Again

Diesel prices rose again last week, with the U.S. Department of Energy reporting a national average of $3.85, up 5.4 cents from last week, while gasoline price surged by 13.7 cents per gallon.

Diesel prices topped the $4 mark in California, where the average price was up 5.6 cents to $4.023, driving overall West Coast prices to an average of $3.959. The lowest prices were in the Gulf Coast region at $3.752. Prices rose in every region of the country.

Gasoline prices are on the rise as well; the average price rose in every region of the country except the Rocky Mountain region. The national average is $3.645, up 13.7 cents over the previous week. The jump was driven by a more than a quarter-per-gallon hike in the Midwest region to $3.772.

Future prices for light, sweet crude for September delivery rose 80 cents, or 0.9%, to settle at $92.20 a barrel on the New York Mercantile Exchange Monday, the highest settlement price since July 19. Crude oil future prices have risen nearly 20% since hitting a low of $77.69 in late June.
Story from truckinginfo.com

Diesel, Gasoline, Oil Prices Spike This Week

The average U.S. price of both diesel and gasoline rose this week, according to data from the Energy Information Administration. Also, oil prices climbed for a fourth day this week.

The price of diesel rose 1.2 cents to $3.695 per gallon. The only region to experience a fall in prices was the Rocky Mountain region. Diesel prices are down 22.8 cents from one year ago.

Gasoline prices rose 1.6 cents to $3.427 per gallon. However, the Midwest, Rocky Mountain and West Coast less California regions all experienced price decreases. Gas prices are down 25.5 cents from this time last year.

Oil prices have risen four consecutive days this week in hopes that the Federal Reserve will take more steps to boost the economy, reports the Associated Press.

Benchmark U.S. crude on Monday rose $1.33 to end at $88.43 per barrel in New York, while Brent crude rose by $1.95 to finish at $103.37 per barrel in London.

The Federal Reserve is considering a new strategy to boost consumer spending, and analysts are anticipating that Fed Chairman Ben Bernanke will speak on this when he addresses Congress on Tuesday and Wednesday this week. As consumers spend more and the economy strengthens, demand for oil is likely to rise.

For more information: www.eia.gov/petroleum/gasdiesel

Finally, good new for gas prices!

Diesel Drops to Lowest Price of 2012

Diesel and gasoline prices fell for the ninth straight week, bringing diesel prices to their lowest so far for 2012 and gasoline prices to their lowest since February. Oil prices fell again this week due to skepticism about Europe's debt crisis.

Diesel prices dropped 6.5 cents this week to $3.781 per gallon, according to a weekly report from the U.S. Department of Energy. California saw the biggest regional decrease, with prices dropping 12 cents to $3.902. Diesel prices are down more than 17 cents from a year ago.

U.S. gasoline prices also fell this week, by an average of 4 cents to $3.572. The West Coast had the biggest decrease with a drop of 9.2 cents to $4.093. Currently, the Gulf Coast is the region with the lowest gasoline prices, an average of $3.311.

Despite a boost for Spain's economy in the form of a $125 billion bailout loan for its banking system, analysts are still skeptical about the debt crisis in Europe. That skepticism caused oil prices to fall this week. Benchmark oil fell $1.40 to $82.70 per barrel in New York. Brent crude settled at 81 cents to $98.66 per barrel in London.

Spain is the fourth European country to request financial help since the start of the debt crisis, after Greece, Portugal and Ireland.

Story from truckinginfo.com

Diesel prices drop below $4 for first time in 3 months

The national average retail diesel price fell 4.8 cents to $3.956 a gallon for the week ended Monday, May 21, according to the U.S. Department of Energy’s Energy Information Administration. The price has fallen 19.2 cents in the last six weeks and fell below $4 a gallon for the first time since the week ended Feb. 20 and is 4.1 cents below the same week in 2011.

Average retail prices fell in all regions, led by a 6.2-cent decrease in the New England. The nation’s cheapest diesel was $3.854 in the Midwest, while the most expensive was $4.303 in California.

Complete diesel price information is available on EIA’s Website

Fuel Prices Keep Falling, Greek Economy Affects Oil Prices

Diesel and gasoline prices dropped for the fifth straight week, but oil prices continue to fall due to concerns over Europe, particularly Greece's economy.

Diesel fuel prices dropped by an average of 5.3 cents to $4.004 a gallon, according the the Energy Information Administration's weekly fuel upstate. This is the lowest the average price of diesel has been since late February. Prices are down by an average of 5.7 cents from a year ago.

Gasoline prices dropped by 3.6 cents this week to $3.754 a gallon. That's more than 20 cents lower than gasoline prices a year ago. Prices in the West Coast, the only region to see an increase, went up 12 cents.

Light, sweet crude oil for June delivery on the New York Mercantile Exchange settled $1.35 lower, at $94.78 a barrel, a new low for 2012. The decrease is due to mounting concerns about Greece's economy and rising global oil supplies.

Traders said oil prices are heading for a critical juncture around $92.50 a barrel. This could clear the way for prices as low as $85 a barrel, a level not touched since last October.

Story from truckinginfo.com. To see the EIA's complete weekly fuel update, click here.

A must read regarding the California CARB program

California trucking group slams CARB fuel policies

The California Trucking Association released a study that shows significant job losses directly attributable to the California Air Resources Board’s fuel policies. Goods movement and agriculture sectors especially will be hard hit if the policies are allowed to go into effect as currently designed, CTA says.

CTA says the report, titled “The Impact of the Low Carbon Fuel Standard and Cap-and-Trade Programs on California Retail Diesel Prices,” demonstrates the effect that CARB’s regulatory actions will have on the state’s retail diesel future, leading to a $6.69 per gallon price tag.

The Stonebridge Associates study finds that by 2020, CARB’s Low Carbon Fuel Standard, in combination with the AB 32 Cap-and-Trade Program, could increase the price of diesel fuel by $2.22 per gallon; that would represent more than a 50 percent increase in the price of diesel fuel and $6.69 per gallon at the retail pump. The average price difference between California and neighboring states would be $2.33 per gallon when accounting for taxes.

According to the study, between 2015 and 2020, these higher “California-only” diesel fuel costs will cause a loss of nearly 617,000 jobs in the containerized import sector, $68.5 billion in lost state domestic product, $21.7 billion in lost income and $5.3 billion in lost state and local taxes. CTA says the study states that a “California-only” diesel will put California’s transportation sector at a significant competitive disadvantage.

“CTA is supportive of the production and use of alternative fuels, but the cost gap between CARB’s Low Carbon Fuel Standard and the diesel fuel that the other 49 states will continue to use is unacceptable,” says Scott Blevins, president of Mountain Valley Express and 2012 CTA president. “This is a serious setback for any business dependent on diesel fuel for its operations. State regulators need to step down from their ‘ivory tower’ and understand the impact of these unfair policies on California truckers. CARB’s blind pursuit of policies that will drive many California-based trucking companies out of state or out of business should be of great concern to all Californians.”

CTA says the report states the diesel fuel price increases will cast an even wider net, affecting food, fuel, clothing and other essential services transported by trucks. The report can be downloaded at http://caltrux.org/LCFS.

Story from truckersnew.com

Did you know hot fuel delivers less energy per gallon?

BP Products North America Inc., ConocoPhillips Co. and Shell Oil Products US have agreed to settle lawsuits accusing the oil companies of profiting from "hot fuel," gasoline or diesel fuel for which price has not been adjusted for temperature. "Hot fuel" refers to the expansion of gas or diesel fuel in warmer months. Critics charge that when the fuel expands, it delivers less energy per gallon to the consumer, but the consumer is still charged the same price per gallon.

Oil companies argued that consumers benefitted in cold weather because fuel contracts and then contains more energy per gallon than usual. The companies also claimed that it would be too expensive to equip every retail pump with a temperature compensating device. Sixty degrees is the century-old government standard for gas or diesel sold at the pumps.

In 2006, the Kansas City Star wrote a series of stories about the issue, estimating that hot fuel cost consumers $2.3 billion dollars a year. With today's fuel prices, that would be as much as $3.5 billion. After the Star's reports, class-action lawsuits sprouted up against dozens of companies, including oil giants and fuel-station chains. Being that I live in Florida, I think I am getting the short end of this stick no matter what way you look at it…

Read the full story here.

Rising gas prices not a problem for all

Seems that everyone is griping and crying over the seemingly never ending hikes at the pump. But, it’s safe to say, not everyone is experiencing these problems. There are multiple cases where the oil boom is actually increasing profits for many businesses around the country. I found many of these businesses, but I thought I’d just highlight three.

1.       Hulsing and Associates Architects: Many cities and counties are expanding their infrastructure and some of those projects have been going to Hulsing and Associates. Most of the projects involve designing buildings like schools, water treatment plants and courthouses. They’re also doing additions to many county courthouses because of all the oil men who come in. Courthouses are expanding in part to better accommodate the influx of oil workers researching land titles.

2.       The Carrizo Springs Javelin: This local newspaper now averages roughly 20 pages per issue up from about 12 pages. This is because of the increase in advertisements. The classified ads are mostly aimed at the oil industry and involve everything from citations for landowners to ads for parking spots for the RVs in which many of the workers live.

3.       Quallion: A custom battery manufacturer is hoping to capitalize on the increasing cost of fuel by selling lithium-ion batteries to power idling trucks. Government grants will allow Quallion to mass produce lithium-ion batteries -- power packs that are lighter, smaller and have a longer cycle life than their lead acid counterparts.

So although the gas prices are hitting many of our wallets pretty hard, some companies are lucky enough to increase profits because of the increases. So next time you gas up, be thankful that it's at least helping some businesses out, instead of hurting us all.

A Small Thing to Help Fuel Economy

Now I know everyone is depressed about the way gas prices have been climbing, so I wanted to share this article I read recently to slightly counteract that. Now many of us have heard before that tire pressure can also affect fuel economy, but I never knew by how much. I always figured it was something that was a pain to maintain and only saved me $50 a year. Well I was very wrong..

The article said that the program goals were to assess the cost/benefit, to determine if the systems could influence maintenance intervals in a positive way and to determine their impact on performance and safety. It went on to explain how they saw an increase in fuel economy in both fleets of 1.4%, which seems small but is a big deal! Based on current fuel costs [about $4.00/gal] and equipment costs of about $1,500 per tractor-trailer unit, the ROI comes in under one year!!

Steers tires also saw an improvement in tread wear of 5/32 per million miles and trailer tires saw an improvement of almost 2/32 on an inch per million miles. The drive tires, however, improved by nearly 30/32 per million miles. The test was a very positive experience for both fleets.

So although it seems like a minor thing, it can make a huge impact in the long run! Read the full article here: http://www.truckinginfo.com/news/news-print.asp?news_id=76201

8 reasons why gas will hit $5 a gallon this year

1. Strait of Hormuz

About 20 percent of the crude oil produced in the world is shipped through the Strait of Hormuz, and Iran has threatened to shut down shipping traffic through the Strait.

2. Iran

Because of the embargo against the nation due to nuclear weapons violations, the U.S. has pressured large oil importers such as Japan to act to isolate Iran by cutting their imports. Japan apparently has agreed to cut its Iranian crude imports by 20 percent. But as the world’s third largest oil importer, Japan indeed will have to get its oil somewhere other than Iran -- which will put more pressure on current production.

3. Refiners raising prices

Many large refineries are owned by public companies that do not have much appetite for posting ongoing losses. To avoid losses, refiners will have to increase gasoline prices

4. Other geopolitical risks

Problems in Nigeria the 14th largest producer of oil in the world, Venezuela the world’s 11th largest producer of crude and across Africa in Bahrain, Libya, Iraq, Nigeria and Yemen could cause rises in gas prices.

5. The EU may save itself

Deepening financial and economic trouble in Europe would drop demand for oil there. However, if leaders in the region can settle on mechanisms to protect nations with financial problems from default, national budgets will not be cut to extraordinarily low levels -- levels that would otherwise kill both consumer demand and business demand for oil.

6. U.S. economic recovery

Demand for oil-based products across the entire economy will pick up with any recovery.

7. Summer

In the U.S., summer vacation driving has historically boosted demand for gasoline.

8. Supply risk

In December 2011, OPEC members produced nearly 31 million barrels a day, cutting the cartel’s spare capacity capability from 3.18 million barrels per day to 2.85 million.

Read the full article here.