After 3-week dip, diesel prices up 1.7 cents

After 3-week dip, diesel prices up 1.7 cents

Highway Trust Fund reaches lowest level in decades

After a three-week slide, average U.S. diesel prices are up 1.7 cents this week to $2.502 from last week’s $2.485.

According to the most recent data from the Energy Information Administration (EIA), this week’s price is $1.175-per-gallon cheaper than the same week last year.

Diesel is up across the board in most regions – with the exception of California, which saw a 1.4-cent increase to $2.803 from $2.817, and the Rocky Mountain area, where prices dropped 9 tenths of a cent to $2.488 from $2.497.

All regions remain under the $3-per-gallon mark, according to EIA.

Average U.S. retail pump prices for gasoline are also up. Prices increased by 1.1 cents this week to $2.235 from $2.224. That is 70.6-cents-per-gallon less than the same week last year.

Similar to diesel, gas prices are up across the board – with the exception of the Midwest, which is dropped 5.3 cents to $2.215 from $2.268, and the Rocky Mountain region, where prices fell 5.9 cents per gallon to $2.181 from $2.240.

According to EIA’s Today in Energy report, earlier this year, the Highway Trust Fund reached its lowest level in decades – ending July at $6.1 billion. EIA reports that a Congressional transfer of more than $8 billion boosted the fund’s balance to $12 billion at the end of the fiscal year in September. However, that is still the second-lowest year-end level since 1984, EIA said.

Maintenance of the federal highway system and road construction depends on the fund, which receives revenue from gasoline and diesel fuel taxes.

“Tax receipts are based on fuel consumption rather than driving distance, so as fuel economy improves, tax receipts may decline even as travel rises,” EIA said. “From 2007 to 2011, highway travel itself declined, further reducing tax receipts, but since 2011 vehicle-miles traveled have increased. Over time, expenditures from the HTF have increased as the highway system expands and as it ages, because of higher maintenance requirements.”

TAGS: News Fuel
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