Fuel Prices Up 18% for Summer

By Dan Collins on 14 August 2012
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BMW X5 diesel at fueling station

Filling your tank has gotten more expensive

Domestic fuel prices are on the rise, according to the latest data released by the U.S. Energy Information Administration. Prices have risen consistently since July, which marked a three-month low. A gallon of regular unleaded gas currently costs an average of $3.72 and diesel $3.97.

These prices represent a 2% increase in the cost of gasoline and 2.9% increase in the cost of diesel in the last week. Prices are still short of the April 2 highs of $3.94 per gallon of gasoline and $4.15 for diesel, but since July 2, gasoline is up 17.4% overall, and diesel 13.7%.

Domestic supply issues are largely to blame for this recent spike in prices. Reduced supply on the west coast has been connected to a large fire that occurred on August 6 at Chevron’s Richmond, California refinery. In addition to the spike in prices that is particularly pronounced on the west coast, prices have been increasing globally on concerns for the European economy and the July 1 EU sanctions on Iranian oil.

Prices increased the most on the west coast, but were up all other region of the U.S. Prices in the Rocky Mountains and Midwest were least affected, but still rose in the last week. Prices are not expected to decrease until the fall, with futures for September-delivery crude oil at a three-month high.