Diesel Prices Rise in Third Straight Increase

Fuel has risen 43.3¢ since July 17th

Fuel prices have been rising again for three straight weeks, and have settled at $4.239. 

Gasoline likewise is rising and increased 7.1¢/gallon resulting in a national average of $3.828. Locally to TLI in Birdsboro PA Gasoline is $4.00/gallon.

The retail price of a gallon of diesel fuel reflects the costs and profits (or losses) of producing and delivering the product to customers. The retail price of diesel fuel has four components:

• The refinery’s cost for purchasing crude oil
• Refining costs and profits
• Distribution, marketing, and retail station costs and profits
• Taxes (federal, state, county, and local government)

The relative share of these components in the retail price of a gallon of diesel fuel varies over time and by the region of the United States where it is sold.

Why are West Coast Diesel prices so much higher than the national average?

Diesel fuel prices on the West Coast, especially in California, are higher than in other regions of the country because of taxes and supply issues. As of January 1, 2023, total state taxes on retail, on-highway diesel fuel in California totaled 76.20 cents per gallon, and the average of total state taxes for all 50 states was 33.88 cents per gallon.

California is especially sensitive to West Coast supply conditions. Unlike other U.S. markets, which are interconnected by pipelines and river systems, the West Coast liquid fuels market is relatively isolated and largely supplied by in-region refinery production. Because of this relative isolation, it can be costly to transport supply from outside the region when a refinery outage occurs.