Analysis by Dr. Nancy Yamaguchi
The Energy Information Administration (EIA) released its weekly data on diesel and gasoline retail prices for the week ended August 7, 2017. At the national level, prices for both fuels rose. Retail diesel prices jumped by 5.0 cents per gallon, while gasoline prices increased by 2.6 cents per gallon. Retail prices rose in all PADDs.
Although the retail price increases have been significant, they have lagged the increase in futures prices for crude, suggesting that additional increases in retail prices may be expected in the coming week. Between July 24 and August 7, West Texas Intermediate (WTI) crude futures prices rose by approximately 9.5 cents/gallon. Yet retail diesel prices rose by 7.4 cents/gallon, and retail gasoline prices rose by only 6.6 cents/gallon in comparison.
For the current week ended August 7, diesel prices rose by 5.0 cents to arrive at an average price of $2.581/gallon. Retail diesel prices have risen for six consecutive weeks, and this latest increase was by far the largest. Since the week ended June 26, diesel prices have risen by 11.6 cents per gallon.
PADD 1 retail diesel prices increased by 4.7 cents to $2.613/gallon. New England prices increased by 2.8 cents to average $2.618/gallon. Central Atlantic diesel prices rose by 4.5 cents to an average of $2.751/gallon. Lower Atlantic prices increased by 5.2 cents to average $2.514/gallon. PADD 1 prices were 29.2 cents/gallon above their prices for the same week last year.
In the Midwest PADD 2 market, retail diesel prices increased by 5.7 cents to average $2.543/gallon. Prices were 26.8 cents/gallon above their level for the same week last year.
In the Gulf Coast PADD 3, retail diesel prices increased by 5.1 cents to $2.41/gallon. This price was 22.6 cents higher than in the previous year.
The largest price increase occurred in the Rocky Mountains PADD 4 market, where retail diesel prices rose by 5.8 cents to $2.673/gallon. This price was 27.7 cents higher than in the prior year.
In the West Coast PADD 5 market, retail diesel prices rose by 3.2 cents to $2.848/gallon. This price was 25.3 cents above its level from last year. Prices excluding California rose by 4.3 cents to $2.747/gallon, which was 29.3 cents above the retail price for the same week last year. California diesel prices increased by 2.3 cents to an average price of $2.930/gallon, 22.3 cents higher than last year’s price.
U.S. retail gasoline prices rose by 2.6 cents for the week ended August 7, to an average price of $2.378/gallon. During the most recent week ended August 7, prices were 22.8 cents higher than for the same week in 2016. Gasoline prices have risen for three consecutive weeks, rising by 10 cents per gallon since the week ended July 17.
In the East Coast PADD 1, prices for gasoline rose by 3.0 cents to $2.336/gallon. This price was 27.0 cents higher than last year’s price. Prices increased by 2.7 cents in New England to $2.384/gallon. Central Atlantic market prices jumped by 5.3 cents to $2.47/gallon. Prices in the Lower Atlantic market rose by 1.4 cents, to an average price of $2.221/gallon. This was 23.0 cents higher than last year’s average price for the same week.
In the Midwest PADD 2 market, retail gasoline edged up by 0.8 cents to average $2.284/gallon. Gasoline pump prices were 16.9 cents higher than they were one year ago.
The largest price increase was seen in the Gulf Coast PADD 3 market, where gasoline prices were hiked by 7.1 cents to average $2.154/gallon. Prices for the week were 22.6 cents higher than for the same week in 2016.
In the Rocky Mountains PADD 4 market, gasoline pump prices increased by 4.7 cents to average $2.390/gallon. This price was 16.4 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 $2.842/gallon. This was 26.9 cents higher than at the same time a year ago. Excluding California, West Coast prices rose by 0.9 cents to an average of $2.588/gallon. This was 20.1 cents higher than at the same time in 2016. In California, prices rose by 0.8 cents to an average pump price of $2.989/gallon. California prices were 30.8 cents higher than last year’s price for the same week.
