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Diesel Prices continue to rise

Diesel Prices continue to rise



During July, the Energy Information Administration (EIA) released new data regarding a constant rise of the price per gallon of diesel in the US. On July 5th, the national average price increased from 3.1 cents to 3.331 cents, recording 10 successive weeks of rise.

In the same week in California, the price per gallon achieved 4.185 cents, which is probably a consequence of California’s climate change policies in combination with State’s anti-consumer motor fuel policies.

Even though the price of crude oil is rising, the Energy Information Administration report is predicting a humble rise in fuel exploration. This outlook would enhance the production of oil and favor the financial aspects of energy companies.

Although a rising of exploration and production is expected the EIA reported that there are still doubts, which were mentioned in the report:
- “The July Short-Term Energy Outlook remains subject to heightened levels of uncertainty related to the ongoing economic recovery from the COVID-19 pandemic”
- “U.S. economic activity continues to rise after reaching multiyear lows in the second quarter of 2020. The increase in economic activity and easing of the COVID-19 pandemic have contributed to rising energy use.”

The distribution of oil, gasoline and diesel is a key factor of this enhancing price. After COVID-19 pandemic, transporting the fuel to stations across the US requires more specs to carry dangerous materials.
For more information on the evolution of fuel prices, please visit: https://www.eia.gov/dnav/pet/pet_pri_gnd_dcus_nus_w.htm


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Edic.: 169
Autor: El Trailero Magazine
Date: 8/2021


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