The benchmark diesel price used as the basis for most fuel surcharges rose this week by the second-largest amount since the start of the Iran war.
The Department of Energy/Energy Information Administration average retail diesel price climbed 33.8 cents/gallon to $5.134/g, published Tuesday but effective Monday
The size of the increase is the second largest since the benchmark price rose 96.2 cts/g on March 9, the first time the DOE/EIA price measured a full week of market movement following the launch of military action against Iran by the U.S. and Israel on February 28/March 1. With the benchmark price having moved up sharply two weeks in a row, it is now 55.6 cts/g more than where it stood just three weeks ago. Retail prices, as they generally do, are reacting after the fact to increases in the price of ultra low sulfur diesel (ULSD) on the CME commodity exchange.
But they are likely only reflecting a part of the increases in that price just since the posting of the DOE/EIA price one week ago as the normal lag stays in place. A $1 increase since July 2 is in sight The pace of change in the futures market, if it continues, could end up adding $1/g in the price of ULSD on CME in the next few days. ULSD’s low settlement in the recent cycle was $3.1822/g on July 2, not even three weeks ago.