National diesel average tops the $5 per gallon mark, setting a new record

Another week brings another new record high for the average price per gallon of diesel gasoline.

That was made clear in data issued this week by the United States Energy Information Administration (EIA), which showed that the national diesel average, for the week of March 14, set a new record and topped the $5 per gallon mark, for the first time ever, coming in at $5.250 per gallon.

This breaks the previous record, from the week of March 7, at $4.849, with the tally for March 14, marking a $0.401-cent increase over the week of March 7, while posting an annual increase of $2.059. What’s more, the $0.401-cent weekly increase marks the second-biggest sequential gain, for the national diesel average, only short of the all-time record of the $0.745-cent gain, which was recorded, for the week of March 7.

Prior to the last two weeks, for the week of February 28, the national average increased $0.049, to $4.104 per gallon. That came on the heels of a $0.036-cent increase, to $4.055, for the week of February 21, and a $0.68-cent increase, to $4.019 per gallon, for the week of February 14.

Prior to these last five weeks, the national diesel average had not been above the $4 per gallon mark since the week of March 17, 2014, when it came in at $4.003 per gallon. Prior to that, the national diesel average cracked the $4 per gallon mark the week of March 25, 2013, when it came in at $4.006 per gallon.

West Texas Intermediate Crude oil is currently trading at $94.13 on the New York Mercantile Exchange, down from $127.39 a week ago at this time.

The increase on global oil prices, driven by the ongoing Russia-Ukraine conflict, has become a major concern in global energy markets while significantly increasing diesel prices for shippers and carriers.

But a MarketWatch report noted that “hopes for a diplomatic solution in Ukraine continued to weigh on oil prices Tuesday, along with COVID-19 lockdowns in China,” according to Carsten Fritsch, analyst at Commerzbank, in a note to clients.

“What is more, one province in the northeast of China has issued a ban on travel, which is unlikely to leave oil demand in China unscathed. In addition, India has said that it is willing to buy Russian oil, which has become considerably cheaper because Western buyers are refusing to purchase it,” he said.

The report added that negotiations between Ukraine and Russia were set to continue after no breakthrough was reached on Monday, and it added that “apart from the humanitarian catastrophe, the conflict has sparked concerns over global economic growth and sent commodities prices surging across the board.”