The average cost of fuel for trucking in the US increased by 1.8 cents to $4.622 per gallon in the week of January 30th, 2023. This marks the second increase in two weeks and the third overall this year. Prices have also gone up in every region of the country.
This week’s increase in the nationwide average price of diesel fuel, which rose 1.8 cents to $4.622 per gallon, follows a rise of 8 cents in the previous week of January 23rd. According to the US Energy Information Administration (EIA), diesel prices had been down slightly, by 2.5 cents, in the week prior to the 8-cent increase. Meanwhile, the motor club AAA reports an average diesel price of $4.678 per gallon, an increase of 4.2 cents, with the daily average trending upward all week.
According to the US Energy Information Administration (EIA), the average price of diesel and gasoline has increased in every region of the US. The average price of gasoline for the week of January 30th, 2023, is up 7.4 cents to $3.489 and is now 12.1 cents higher than the average price of a year ago. The use of gasoline, which is used by some commercial fleets and widely by consumers, had fallen below the year-ago mark for several weeks at the end of 2022 but has since risen again.
Regional increases on par with national rise
According to the US Energy Information Administration (EIA), the average price of diesel fuel in some regions of the US rose higher than the national average for the week of January 30th, 2023. On the West Coast, which is known for having higher fuel prices, the price of diesel rose by 3.1 cents to $5.126 per gallon. On the East Coast, the price increased by 2.5 cents to $4.835. In the Gulf Coast region, diesel prices rose by 3.1 cents to $4.351. Meanwhile, in the Midwest and the Rocky Mountain regions, diesel prices were either unchanged or rose by less than a penny.
According to the US Energy Information Administration (EIA), diesel prices decreased in only one region, the Central Atlantic, where diesel fell by 1.2 cents to $5.057. This is one of two subregions on the East Coast where diesel prices are still above $5 per gallon.
Stabilization ahead for oil prices
Stable oil prices usually result in predictable patterns for diesel and other distillates. As a result, the outlook for diesel prices in the new year is expected to be stable or slightly elevated or slightly lower, unless there are market-disrupting events such as the Russian invasion of Ukraine in early spring of 2022.
The US Energy Information Administration (EIA) predicts that oil prices in 2023 should remain stable and lower than the levels of 2022. For example, West Texas Intermediate Crude averaged around $95 per barrel in 2022, while at the end of January 2023, it was around $78 per barrel. EIA also expects US oil production to increase this year and possibly set a new annual production record, despite declining inventories. As a result, diesel prices remain historically high but stable.
