• Fuel spikes setting records

    The rising cost of gasoline and diesel fuel in the U.S. is setting records for the some of the largest one-week price spikes since the federal government began tracking fuel price data two decades ago
    March 2, 2011
    3 min read

    The rising cost of gasoline and diesel fuel in the U.S. is setting records for the some of the largest one-week price spikes since the federal government began tracking fuel price data two decades ago.

    The national average retail price for regular grade gasoline increased 19 cents between Feb. 21 and Feb. 28, jumping from $3.19 to $3.38 per gallon, according to the Energy Information Administration (EIA). That marks the second largest one-week increase since the agency began tracking weekly retail gasoline price data in 1990.

    The only week posting a larger one-week increase was in September 2005 when retail gasoline prices rose sharply due to Hurricane Katrina. However, the EIA stressed that current gasoline prices are still well below the all-time record of $4.11 per gallon, set on July 7, 2008.

    Diesel fuel is also on a price roller coaster, EIA said, with the U.S. average price climbing over 14 cents per gallon over the same one-week period, rising from $3.57 to just over $3.71 per gallon. The largest spike occurred on the West Coast and particularly in California, totaling just over 16 cents per gallon.

    Diesel in California now costs just over $3.96 per gallon on average, EIA noted – the highest in the nation – followed by $3.90 per gallon in New England, $3.89 for the West Coast as a whole, and $3.87 for the central Atlantic states

    The agency pointed out that the rising cost of domestic and global crude oils remains the central reason behind those fuel price spikes, with a $10 per barrel change in the spot price of crude oil roughly translating into about a 24 cent per gallon change in the retail price of gasoline within about two months. About half of that price change usually occurs within the first two weeks of the crude oil price change, EIA said.

    From the beginning of 2011 through February 18 – just before the Libyan crisis began – the spot price of Brent crude oil increased about $9, rising from $93 to $102 per barrel. Since then, the Brent price has jumped by a further $10, climbing to over $112 per barrel.

    The American Trucking Assns. (ATA) warns that rising fuel costs will impose a big fiscal burden on trucking.

    In 2010, ATA estimated that the trucking industry spent some $101.5 billion on diesel fuel – a 28% increase over 2009. And even before the current spike in crude oil prices, the truck lobby projected that motor carriers would spend roughly $20 billion more at the pump in 2011, for a total fuel bill of $121.5 billion.

    About the Author

    Sean Kilcarr

    Editor in Chief

    Sean Kilcarr is a former longtime FleetOwner senior editor who wrote for the publication from 2000 to 2018. He served as editor-in-chief from 2017 to 2018.

     

    Voice your opinion!

    To join the conversation, and become an exclusive member of FleetOwner, create an account today!

    Sign up for our free eNewsletters

    Latest from Operations

    Brakebush Transportation
    Brakebush Transportation was awarded the 2025 FleetOwner Private Fleet of the Year Award, sponsored by Descartes, for midsize operations.
    Members Only
    Leaders of Brakebush Transportation, a century-old family business, share some of their innovative strategies and deep commitments to drivers that earned their operation FleetOwner...
    Schneider
    schneider 90th anniversary
    Schneider hosted an anniversary event, honoring a legacy that began in 1935 and grew to 12,500 trucks today.
    346047 | Aaron Kohr | Dreamstime.com
    extending asset lifecycles
    By extending asset life cycles strategically, organizations can mitigate financial risks associated with fleet management while maintaining operational efficiency.