$4 Diesel a Reality
March 10, 2008
Diesel prices hit another record last week, hitting the $4 mark in some parts of the country, while crude oil prices rose to nearly $108 a barrel.
The national average on-highway diesel price of a gallon of fuel was $3.819, according to the U.S. Energy Department's Energy Information Administration. That's up 16.1 cents from a week ago and $1.134 from a year ago. The highest average was in the Central Atlantic region at $3.989, with California close behind at $3.955 and New England at $3.938. The lowest prices were in the Rocky Mountain region at $3.732.
According to the AAA, soaring crude oil prices helped push the average price of a gallon of diesel fuel past $4 on Friday in San Luis Obispo, Calif., and within pennies of that mark in several other California markets. Prices of over $4 a gallon were also reported in some parts of central New York.
Light, sweet crude for April delivery closed at a record $107.90 a barrel on the New York Mercantile Exchange Monday, after hitting an intraday high of $108.21. The Wall Street Journal notes that crude oil futures have risen $20 in under two months, "largely on the weakness in the dollar, which makes commodities priced in the U.S. currency relatively cheap for buyers in other currencies."