Analysis by Dr. Nancy Yamaguchi
The U.S. Energy Information Administration (EIA) released its weekly data on diesel and gasoline retail prices for the week ended September 10, 2018. On a national average basis, gasoline prices rose by 0.9 cents/gallon. Diesel prices rose by 0.6 cents/gallon.
West Texas Intermediate (WTI) crude prices fell by $2.05/ during the week ended September 9. However, WTI prices had risen by $1.46/b during the week leading up to Labor Day. Retail prices may also have been strengthened by Hurricane Gordon.
For the current week ended September 10, diesel prices rose 0.6 cents to reach an average price of $3.258/gallon. Prices increased in all PADDs. The national average price was 45.6 cents per gallon higher than it was one year ago.
In the East Coast PADD 1, diesel prices rose by 1.1 cents to arrive at an average price of $3.246/gallon. This was the largest price increase among the five PADDs. Within PADD 1, New England prices fell by 1.5 cents to average $3.255/gallon. Central Atlantic diesel prices increased by 0.8 cents to average $3.407/gallon. Lower Atlantic prices rose by 1.7 cents to arrive at an average price of $3.131/gallon. PADD 1 prices were 41.7 cents/gallon above their prices for the same week last year.
In the Midwest PADD 2 market, retail diesel prices edged up by 0.3 cents to average $3.194/gallon. Prices were 44.1 cents/gallon above their level for the same week last year.
In the Gulf Coast PADD 3, retail diesel prices rose slightly by 0.4 cents to average $3.039/gallon. This price was 39.2 cents higher than for the same week in the previous year. Until two weeks ago, PADD 3 had been the only market where diesel prices had remained below $3/gallon.
In the Rocky Mountains PADD 4 market, retail diesel prices increased by 0.3 cents to average $3.367/gallon. PADD 4 prices were 54.0 cents higher than in the prior year.
In the West Coast PADD 5 market, retail diesel prices rose by 0.4 cents to average $3.746/gallon. This price was 64.4 cents above its level from last year. Prices excluding California fell by 0.4cents to average $3.465/gallon. This price was 45.8 cents above the retail price for the same week last year. California diesel prices rose by 1.0 cent to arrive at an average price of $3.969/gallon. During the week of June 4, California prices had topped the $4/gallon mark, but crude prices waned, and product prices followed. However, diesel prices have crept up for three weeks running now, so $4/gallon diesel is possible again for California. California diesel prices were 79.0 cents above last year’s price.
U.S. retail gasoline prices rose by 0.9 cents to average $2.833/gallon during the week ended September 10. Prices rose in all PADDs. The national average price was 14.8 cents per gallon higher than it was one year ago.
For the current week ended September 10, East Coast PADD 1 retail prices for gasoline rose by 1.1 cents to average $2.786/gallon. The average price was 5.6 cents higher than last year’s price. Within PADD 1, New England prices rose by 0.9 cents to average $2.864/gallon. Central Atlantic market prices rose by 1.9 cents to average $2.928/gallon. Prices in the Lower Atlantic market increased by 0.5 cents to average $2.674/gallon.
In the Midwest PADD 2 market, retail gasoline prices increased by 0.9 cents to arrive at an average price of $2.74/gallon. Gasoline pump prices were 19.9 cents higher than they were one year ago.
In the Gulf Coast PADD 3 market, gasoline prices jumped by 2.3 cents to average $2.572/gallon. This was the largest price increase among the PADDs, likely a function of stormy weather. PADD 3 continues to have the lowest average prices among the PADDs. Prices for the week were 7.1 cents higher than for the same week in 2017.
In the Rocky Mountains PADD 4 market, gasoline pump prices edged up by 0.1 cents to average $3.008/gallon. Last week, PADD 4 became the first PADD to join PADD 5 in having gasoline prices of over $3/gallon. Prices were 39.7 cents higher than at the same time in 2017.
In the West Coast PADD 5 market, retail gasoline prices rose by 0.7 cents to arrive at an average of $3.336/gallon. This was 29.8 cents higher than at the same time a year ago. PADD 5 continues to have the highest gasoline prices among the five PADDs. Until last week, PADD 5 had been the only PADD where retail gasoline prices exceeded $3/gallon. Excluding California, West Coast prices rose by 0.5 cents to average $3.128/gallon. This was 34.4 cents higher than at the same time in 2017. In California, pump prices increased by 1.5 cents to average $3.513/gallon. California prices were 32.7 cents per gallon above their levels from last year.