Diesel and Gas Prices Are Back Down To Earth
It's been a wild ride for diesel and gas prices in the past year, as global events and recovering business activity moved prices up and down the ladder, but at this point, based on the weighted average of 350 retail outlets across the country, Diesel (blue line) is down to $4.128 a gallon and "regular" (red line) gasoline is down to $3.421.
There are some strong regional variances in these prices, so when some people see them, they're skeptical, but by way of example, diesel is currently (3/27/2023) priced at $3.88 a gallon in the Gulf Coast, to $5.165 in California. Proximity to physical refining and logistics play a role in these variances.
For regular gasoline, some have reported seeing prices in the high $2.00 range. Now here's where the rubber meets the road:
Higher fuel costs, especially for diesel, which is heavily utilized by the trucking industry, were blamed for higher prices at the end consumer level. Will prices now decline or does the supply chain simply stand pat and pocket the newly found profit spread? I'm betting the latter, because the market is now comfortable with them.