The National diesel prices began to drop in November 2022. During the fall, prices dropped as much as 21.3 cents, making diesel way cheaper than it had been since February. However, the automobile industry met with a rude shock as national diesel prices rose after a seven-week decline in January 2023.
Progression Of the National Diesel Prices Rise
On September 19, the average diesel prices had skyrocketed to $4.964. However, this saw a slight decline on September 26 as diesel sold for $4.889. Between October and November, there was a massive diesel prices increase. By November 7, diesel had an average selling price of $5.333 per gallon.
This was a short-lived diesel price rise as the market witnessed a 17.4 cent decline in the week of December time. The Department of Energy’s Information Administration stayed abreast and constantly updated the public with progressions in diesel prices. According to the department, the average diesel price was at its lowest, on February 28, whereby diesel had an average entry price of $4.101. The diesel prices are also seen to hit such low point again as at December 26.
As a result of the decline, diesel was sold at an average price of $4.967 per gallon. Right on the heels of the 17.4 cent decline was a massive 21.3 cent decline on December 12. This crash in diesel prices brought the selling price of diesel to $4.754.
Although it was not very noticeable, the diesel prices decline reduced to 15.8 cents by December 19. Hence, bringing the average national diesel prices to $4.956. December 26 saw a new light as the decline reduced remarkably to 5.9 cents bringing the average diesel prices to $4.537.
January 2nd set a new pace with 4.6 cents rise in average diesel prices. Based on the latest development, diesel had an average selling price of $4.583.
Diesel Prices Rise Affects All Region but One
Amidst the national diesel prices rise in the U.S., the Rocky Mountains region managed to maintain its steady price. The U.S. Energy Information Administration reports stated that diesel was down 1.5 cents to $4.730 by December 26. This was not the case in other regions, as there was a slight increment in diesel prices in other states.
The Gulf coast witnessed a 10.37 cents surge in diesel prices as it hit $4.267. The East coast saw a slightly lower price surge of 4.4 cents. Hence, making the diesel price leap to $4.852. Interestingly, amidst the 4.4 cents surge, the New England and Central Atlantic subregions remained unaffected by the change in price.
The dynamics in fuel surge in the Midwest were slightly minimal. The region experienced a 2.1 cents increment, which increased the price to $4.423. The west coast is in a class of its own. The area is the only part of the country with an average price of over $5 per gallon.
With a 2.3 cents boost in price, diesel on the West Coast goes for $5.091. Despite the rise experienced by the different regions, the national diesel prices rise might be a temporary change.
Usually, the per-barrel oil prices indicate the direction of oil prices. As of January 3, the West Texas Intermediate and Brent Crude saw a reduction of about $1.50 in barrel prices. However, the prices have stayed around $80 per barrel since the end of 2022.
Effects Of the National Diesel Prices Rise on The Economy
The impacts of the diesel prices rise on the trucking industry cannot be undermined. The industry experienced a similar case during the California price surge and the gas price hike in 2022. However, the impact of the current diesel prices rise will not be the same as it was then.
One side effect of the national diesel prices rises the increase in carrier costs. Failure to increase carrier costs may cause logistics companies to run at a loss. Due to the diesel prices rise, companies would spend more to have their trucks running smoothly. Additionally, considering the variation in prices across different regions, there would be a need to employ foresight, especially for interstate trucks.
Additionally, national diesel prices rise would lead to inflation. Although consumers may not feel this surge while at the pump, they will feel its impact at the stores. This is because stores will be spending more to transport their goods, they will need to increase the selling price of goods.
Failure to factor in the diesel prices rise will cause store owners to run at a loss. Unfortunately, such increments will cut across different products and talk more about consumers in the long run.
The National diesel prices increase could also lead to delayed delivery of vehicles to their owners. Due to the rise in diesel prices, truckers will not deliver vehicles as promptly as expected. The reason is quite simple; trucker will prefer to pair deliveries along the same route together.
Unfortunately, only some consumers would want to ship their vehicles while prices are high. Consequently, much time might be lost while searching for extra vehicles to fill the available space in a shared open carrier. To avoid these impacts, it is best to employ the service of a reliable auto transport company like Metti International.
Metti International is here to Help
Metti International’s track record of prompt delivery in turbulent trucking periods is unmatched such as the post covid-19, port congestion, supply chain disruptions and semi-conductor chip shortage storms. Despite the truck driver shortage, we ensured our clients got their vehicles promptly and safely. At Metti international, we provide smooth and seamless car shipping experience.
We only use carriers with 95% or higher service ratings for car shipments. Over the years, our track record of excellence earned us the BBB Torch Award For Ethics four times. We are committed to our clients and ensure they get excellent customer service each time they contact us. Shipping with Metti International is one of the most economical ways to get your vehicle across the 18 counties in the U.S.