Increased demand amid the easing of the pandemic and OPEC+ supply limitations have caused the price of diesel to jump 10.5 cents in the past week. The average retail price of a gallon of on-highway diesel soared to $3.47 during the week of October 4, according to the U.S. Department of Energy’s Energy Information Administration. That’s $1.08 higher than just one year ago.
The nation’s most expensive diesel on average is in California at $4.369, while the least expensive diesel on average is $3.203 a gallon in the Gulf Coast. The Midwest region saw the nation’s highest one-week increase at 10.4 cents. The smallest one-week increase was 3.0 cents in California.
The Biden administration has urged OPEC+ to increase production and is considering releasing crude oil reserves to cool prices. U.S. West Texas Intermediate crude oil hit its highest price since 2014 at $81.06 per barrel. Crude oil accounts for 49% of the cost of a gallon of diesel.
Price increases this fall were also impacted by storm damage. Several refineries in Louisiana are still preparing to restart after flooding and power outages caused by Hurricane Ida. Louisiana's 17 oil refineries account for nearly one-fifth of the nation’s refining capacity and can process about 3.4 million barrels of crude oil per day, says the U.S. Energy Information Administration.
Complete diesel price information is available on EIA’s website.
U.S. Energy Information Administration