Brace yourselves for a long, hot and expensive summer. Diesel prices, averaging north of $4 per gallon this week, are expected to rise along with the temperatures over the coming months. From a sluggish economy to global uncertainty following the death of Osama bin Laden, a perfect storm of factors is contributing to higher prices at the pump.
Although crude oil prices have dropped some recently, the Department of Energy’s Energy Information Administration is still predicting tightening oil markets through 2012. That will translate into stomach-churning diesel prices. On-highway diesel fuel prices are expected to average $3.89 per gallon in 2011 and $3.93 per gallon in 2012. That compares to $2.99 per gallon in 2010.
The increased costs are having a significant impact in California, which last month witnessed a significant decline in trucking. Diesel in the Golden State is currently averaging more than $4.50 per gallon.
What prices are you seeing at the pump? How have increased diesel costs impacted your way of doing business? Drop us a line and let us know.
