Analysis by Dr. Nancy Yamaguchi
The Energy Information Administration (EIA) released its weekly data on diesel and gasoline retail prices for the week ended September 4th, 2017. Hurricane Harvey caused price increases across the country, with the sharpest price hikes seen in the Gulf Coast, East Coast, and Midwest markets. At the national average level, retail diesel prices increased by 15.3 cents per gallon, while gasoline prices jumped by 28.0 cents per gallon. For the week, diesel prices rose by 5.9%, while gasoline prices catapulted by 11.7%.
The fuel market remains in the process of coping with disruptions caused by Hurricane Harvey. Now on the horizon is Hurricane Irma, which could cause massive destruction in Florida if it remains on its predicted path.
For the current week ended September 4th, diesel prices rose by 15.3 cents to arrive at an average price of $2.758/gallon. Diesel prices have risen in eight out of the last nine weeks. In the nine weeks between the week ended June 26th and the week ended September 4th, diesel prices rose by 29.3 cents per gallon.
PADD 1 retail diesel prices rose by 16.2 cents to $2.785/gallon. New England prices increased by 10.5 cents to average $2.723/gallon. Central Atlantic diesel prices rose by 12.8 cents, to an average of $2.886/gallon. Lower Atlantic prices increased by 19.7 cents to average $2.725/gallon. PADD 1 prices were 37.7 cents/gallon above their prices for the same week last year.
In the Midwest PADD 2 market, retail diesel prices increased by 14.1 cents to average $2.707/gallon. Prices were 32.0 cents/gallon above their level for the same week last year.
In the Gulf Coast PADD 3, retail diesel prices soared by 18.7 cents to average $2.615/gallon. This price was 35.1 cents higher than in the previous year.
In the Rocky Mountains PADD 4 market, retail diesel prices rose by 8.1 cents to $2.798/gallon. This price was 30.5 cents higher than in the prior year.
In the West Coast PADD 5 market, retail diesel prices rose by 13.4 cents to $3.044/gallon. This price was 38.0 cents above its level from last year. Prices excluding California increased by 12.5 cents to $2.931/gallon, which was 36.8 cents above the retail price for the same week last year. California diesel prices increased by 14.0 cents to an average price of $3.135/gallon, 38.9 cents higher than last year’s price. PADD 5 typically has the highest fuel prices in the country, and it became the first PADD to have diesel prices rise above $3 per gallon, despite the fact that its refining and distribution system is largely isolated from the Gulf Coast.
U.S. retail gasoline prices vaulted by 28.0 cents for the week ended September 4th, to an average price of $2.679/gallon. Prices rose in all five PADDs, with the largest increases in the Gulf Coast, East Coast, and Midwest markets. Until Hurricane Harvey hit, consumers had enjoyed a summer driving season with unusually sedate prices. Between the beginning of June and the week ended August 21st, gasoline prices actually declined by 5.4 cents/gallon. In the two weeks following, gasoline prices jumped by 31.9 cents/gallon.
The largest price hike occurred in the East Coast PADD 1, where prices for gasoline soared 38.6 cents to $2.723/gallon. This price was 55.0 cents higher than last year’s price. Prices increased by 35.7 cents in New England to $2.745/gallon. Central Atlantic market prices rose by 36.9 cents to $2.804/gallon. Prices in the Lower Atlantic market skyrocketed by 40.7 cents, to an average price of $2.656/gallon. This was 53.1 cents higher than last year’s average price for the same week.
In the Midwest PADD 2 market, retail gasoline prices rose by 23.2 cents to average $2.539/gallon. Gasoline pump prices were 35.9 higher than they were one year ago.
In the Gulf Coast PADD 3 market, gasoline prices jumped by 35.0 cents to average $2.506/gallon. Prices for the week were 50.1 cents higher than for the same week in 2016.
In the Rocky Mountains PADD 4 market, gasoline pump prices increased by 13.8 cents, to average $2.606/gallon. This price was 33.9 cents higher than at the same time in 2016.
In the West Coast PADD 5 market, retail gasoline prices increased by 11.4 cents to average $3.017/gallon. This was 42.3 cents higher than at the same time a year ago. PADD 5 was the only PADD where prices exceeded $3 per gallon. Excluding California, West Coast prices rose by 8.9 cents to an average of $2.763/gallon. This was 36.2 cents higher than at the same time in 2016. In California, prices rose by 12.9 cents to an average pump price of $3.164/gallon. California was joined by Washington as the two state to have average prices reported at above $3 per gallon.
