Tropical Storms Give Diesel Prices a Boost

Diesel prices are up by 1.5 cents nationwide, thanks to Hurricane Laura. The Energy Information Agency released its latest Gasoline and Diesel Fuel update on Monday, and it reflects the impact of the recent storms. 

Hurricane Laura and Tropical Storm Marco came ashore in the Gulf Coast area last week, where most of the nation’s gas is produced. When Laura hit the shores of Lake Charles, Louisiana, it had become a category 4 hurricane. The storms caused hundreds of millions of dollars in damage and turned off much of the country’s exploration and refining capacity.

Now we are seeing the impact reflected in diesel prices. Diesel cost $2.426 last week, but the national average rose to $2.441 for the week ending on August 31st. Prices are still 53.5 cents cheaper than last year. Regular gas prices grew by $0.04 because of the storms.

All ten regions surveyed by the EIA saw an increase. With the exception of New England, every region saw increases of more than a penny.

The biggest jump was in the Midwest, where prices rose by 2.1 cents to $2.329. At the other end of the spectrum, diesel costs only gained by two tenths of a cent in New England. Prices in that region now average $2.622.

Looking at the overall price of fuel, California once again makes it to the top of the list. Prices rose 1.1 cents to $3.276, though it is still 60 cents cheaper than it was last year. The cheapest fuel can be found in the Gulf Coast region, where prices picked up by 1.4 cents per gallon. Diesel now costs $2.188 in that area.
Fuel ranged from 40 to 60 cents cheaper than in 2019 across all regions surveyed. The Wall Street Journal has an interesting (if stressful!) article out today showing how demand for fuel is leveling off, and how that is affecting industry. Read it here.