New Delhi [India], September 21 (ANI): US retail diesel prices have surged to a record nominal high of USD 6.29 per gallon amid tight global supplies, with global distillate fuel production expected to remain below last year’s levels in the coming months, according to the US Energy Information Administration (EIA).
US retail diesel prices averaged USD 6.29 per gallon (gal) last week (September 14), according to EIA’s weekly Gasoline and Diesel Fuel Update.
“On an inflation-adjusted basis, this is the highest price since 2022, and the number is the highest on record in nominal price terms since EIA started publishing this series in 1994,” it said.
The EIA noted that distillate fuel oil prices, often sold as diesel, are influenced by crude oil prices, refining margins or crack spreads, retail margins, distribution costs and taxes. In recent months, tight global distillate supplies and elevated crude oil prices have pushed diesel prices higher.
US distillate production averaged 5.1 million barrels per day (bpd) between January and August this year — marking the highest level since 2019. At the same time, US refineries are also operating near maximum capacity, with utilisation reaching 97 per cent in the week ended September 11.
Despite distillate inventories typically rising during the summer months, stocks have remained largely flat this year.
In the week ended September 11, US distillate inventories were 15.8 million barrels, or 13 per cent, below the five-year seasonal average for 2021–2025, with the low inventory levels pushing refining margins higher.
“...We assume that global production of distillate fuel will remain below last year’s levels in the coming months, contributing to sustained high net exports, inventories remaining low, and prices remaining elevated,” EIA noted.
At the same time, higher diesel crack spreads, coupled with elevated crude oil prices, have pushed retail diesel prices higher, the EIA said. It added that “High diesel prices can contribute to higher on-road and rail freight costs for all goods. The fuel also has significant seasonal uses in agriculture and home heating in the northeastern United States.” (ANI)
US retail diesel price hits record high; global distillate output to remain below last year’s levels: EIA
