Analysis by Dr. Nancy Yamaguchi

 

The Energy Information Administration (EIA) released its weekly data on diesel and gasoline retail prices for the week ended January 1st, 2017. Data was published with a one-day delay following New Year’s Day. At the national level, gasoline prices rose by 4.8 cents per gallon, while diesel prices jumped by 7.0 cents per gallon. Gasoline prices rose in all PADDs except for the Rocky Mountains PADD 4. Diesel retail prices rose in all PADDS 1 countrywide.

An increase in prices this week was expected following Libya’s pipeline explosion. Prices went nearly as high as $60/b on December 27. Prices eased when it appeared that the line would be repaired within a week, and also with the repairs to the Forties pipeline. However, prices ticked up again on heightened civil unrest in Iran and industry estimates that US crude oil stockpiles were drawn down once again. WTI crude prices have remained above $60/b.

For the current week ended January 1, diesel prices rose significantly by 7.0 cents to arrive at an average price of $2.973/gallon.

PADD 1 retail diesel prices rose by 7.6 cents to $2.980/gallon. Within the PADD, New England prices rose by 6.7 cents to average $3.010/gallon. Central Atlantic diesel prices jumped by 8.3 cents to reach $3.151/gallon. This submarket has had diesel prices above $3/gallon for the past eight weeks. Lower Atlantic prices increased by 7.2 cents to arrive at an average price of $2.854/gallon. PADD 1 prices were 35.3 cents/gallon above their prices for the same week last year.

In the Midwest PADD 2 market, retail diesel prices rose by 8.1 cents to average $2.935/gallon. Prices were 39.5 cents/gallon above their level for the same week last year.

In the Gulf Coast PADD 3, retail diesel prices rose by 6.6 cents to average $2.774/gallon. This price was 32.3 cents higher than in the previous year.

In the Rocky Mountains PADD 4 market, retail diesel prices increased by 3.3 cents to average $2.981/gallon. PADD 4 prices were 44.6 cents higher than in the prior year.

In the West Coast PADD 5 market, retail prices rose by 4.9 cents to average $3.361/gallon. This price was 51.4 cents above its level from last year. Prices excluding California increased by 4.7 cents to average $3.073/gallon, which was 31.6 cents above the retail price for the same week last year. California diesel prices rose by 5.1 cents to an average price of $3.590/gallon. This price was 66.9 cents higher than last year’s price. PADD 5 remains the only PADD to have diesel prices above $3 per gallon, though the upward trend is bringing retail averages close to the $3/gallon mark.

U.S. retail gasoline prices increased by 4.8 cents for the week ended January 1, to arrive at an average price of $2.520/gallon.

For the current week ended January 1, East Coast PADD 1 retail prices for gasoline rose by 6.6 cents to $2.492/gallon. The average price was 10.6 cents higher than last year’s price. Prices increased by 2.3 cents in New England to $2.533/gallon. Central Atlantic market prices rose by 6.0 cents to $2.615/gallon. Prices in the Lower Atlantic market jumped by 8.4 cents, to an average price of $2.388/gallon. This was 8.1 cents higher than last year’s average price for the same week.

In the Midwest PADD 2 market, retail gasoline prices increased by 4.4 cents to arrive at an average price of $2.453/gallon. Gasoline pump prices were 10.6 cents higher than they were one year ago.

In the Gulf Coast PADD 3 market, gasoline prices rose by 6.8 cents to average $2.238/gallon. PADD 3 continues to have the lowest average prices among the PADDs. Prices for the week were 9.0 cents higher than for the same week in 2016.

In the Rocky Mountains PADD 4 market, gasoline pump prices decreased by 1.3 cents to average $2.437/gallon. This was the only PADD where prices decreased during the week. PADD 4 prices were 20.3 cents higher than at the same time in 2016.

In the West Coast PADD 5 market, retail gasoline prices increased by 0.9 cents to average $2.975/gallon. This was 32.4 cents higher than at the same time a year ago. PADD 5 typically has the highest gasoline prices among the five PADDs, and had retail gasoline prices above $3/gallon for most of Mid-November and early December. All five PADDs now have retail prices averaging below $3/gallon, though at the State level, California prices remain above $3/gallon. Excluding California, West Coast pricesedged up slightly by 0.1 cents to an average of $2.678/gallon. This was 24.8 cents higher than at the same time in 2016. In California, prices rose by 1.5 cents, arriving at an average pump price of $3.148/gallon. California prices were 36.9 cents per gallon above their levels from last year.