Diesel Highest In More Than 4 Years

Diesel rose 5.6 cents to $4.15 a gallon, its highest national average pump price in more than four years, while gasoline fell for the third time in four weeks. The diesel increase leaves it 34.9 cents higher than the same week last year. Gasoline is 34.3 cents over a year ago. Prior to last week’s 1.5-cent gain, diesel had dropped for two straight weeks. Before that it rose almost 49 cents in 11 consecutive increases. Gasoline has dropped a cumulative 5.9 cents in the past four weeks — 10.5 cents of declines in three downturns, along with a 4.6-cent increase last week. Prior to that, the motor fuel rose 52.2 cents in 11 increases.

California Gives the Thumbs Up to Winter-Blend Fuel

After much speculation, Governor Jerry Brown directed state regulators to allow refineries to produce winter-blend fuel in the state of California. Though typically not sold until after October 31st, the California Air Resources Board gave the thumbs-up yesterday for refineries to start producing winter-blend gasoline due to the shortage in gasoline over the last few weeks. The current shortage is due to the recent production disruptions at Exxon’s Torrance refinery and Chevron’s Richmond refinery, which suffered power outages and a fire respectively. As a result, the California Air Resources Board granted permission to produce the winter-blend fuel, which is easier to make and is expected to reduce prices over time.

Diesel Rose 1.5 cents

Diesel rose 1.5 cents to $4.094, its first rise since Sept. 17, and gasoline also rose. Gasoline rose 4.6 cents to $3.850 a gallon. Diesel is now 37.3 cents higher than the same week last year, while gas is 43.3 cents higher. In the previous two weeks diesel fell 5.6 cents, following 11 weekly increases. Diesel fell 0.7 cent last week, the smallest decline since early April when it fell half a cent.

Diesel Dipped

Diesel dipped 0.7 cent to $4.079, its second straight decline following 11 weekly increases, and gasoline also fell for a second week. Gasoline fell 2.2 cents to $3.804 a gallon. Despite the downturns, diesel is now 33 cents higher than the same week last year, while gas is 37.1 cents higher. Diesel fell 4.9 cents last week and Monday’s 0.7 cent drop is the smallest decline since early January when it fell half a cent.

Diesel & Gas Fuel Taxes

These are always changing at the state . They have not changed at the Federal level in almost two decades. No one wants higher fuel taxes. Right now the fleet fueling costs for these products are almost choking companies.

Is your company taking full advantage of off highway use fuel taxes. These vary by Federal tax and by state to state but it can be a considerable amount of money that your company might be giving away. When it comes to diesel fuel, there are tax credits for fuel being used in refrigerated trucks to keep product cold or warm. Fueling credit for PTO’s on your trucks for a number of different applications. Again, it depends on the state if you can get these credits or not. Sometimes instead of having to pay the actual fuel tax, you might have to pay the state sales tax instead and depending on diesel fuel prices and state sales tax compared to fuel tax, you might be better off not claiming the tax and filling out the paperwork.

If you have not reviewed your possible fuel tax reduction lately, I encourage you to take a look at it. If you need help on these pesty off highway diesel fuel credits or gas credit reach out to us and we will see if we can help you.