The Energy Information Administration (EIA) reported that diesel fuel prices rose 4.7 cents to $3.951 per gallon, the second consecutive weekly increase.
As diesel prices have gotten higher, gas prices were reported lower by 3/10th of a cent to $3.392 a gallon.
Total distillate stocks were down 3.8% from a week earlier. While demand for distillates rose 13.7% from the previous week. Overall demand has increased considerably much of this has to do with natural gas interruption.
What happens when weather gets extremely cold is power plants and factories that normally run on natural gas, must switch over to diesel fuel. This puts a tremendous strain on the diesel fuel supply chain. Leading to higher prices and lack of supply in many parts of the U.S. but mostly through the Upper Midwest and Northeast.
As of today, we are seeing prices at truck stops in Maryland at $4.31 a gallon, Connecticut at $4.61 a gallon, New York at $4.55 a gallon, Ohio at $4.26 and Pennsylvania at $4.55 a gallon. I believe it will get a little worse in these places and the surrounding states before it gets better.
Hard to believe that California pricing is coming in lower than the states above. Also, we have states only paying $3.69 or $3.73 respectfully in Virginia and Tennessee.
We will keep you updated at Sokolis Group Fuel Management 267-482-6155 for any questions or www.sokolisgroup.com for more information on how we can Save your company money.