The State of Diesel in 2011
In many ways, diesel - not gasoline - is the lifeblood of the United States.
Diesel fuels the trucks and trains that crisscross the country, bringing goods and food to the 300 million people who live in the US.
It is the fuel of big industry and transportation, and without it, the society that we take for granted could not exist.
Like all commodities, diesel (along with other petroleum products) is subject to demand and speculation, causing the price to adjust accordingly.
When the price of fuel goes up, the prices of everything transported using this fuel must go up as well.
While the increase may seem minuscule, it can ultimately affect the overall cost of living.
For the seven-day stretch ending on December 27, the price of a gallon of diesel jumped 4.
6 cents nationally.
Some states that are particularly affected by rising gas prices saw even bigger jumps; California was the biggest hit, seeing prices rise by 6.
3 cents.
This last price jump of the year marks a 2010 trend of rising gas prices.
Diesel fuel started the year at $2.
797 per gallon, and ended the year at $3.
294, an increase of approximately 17.
7 percent over 2009's prices.
This must be taken with a grain of salt, though, as 2008-2009 saw the bursting of the petroleum investment bubble.
After record highs in gas prices, speculation caused a sudden downturn in average prices.
Increases in the cost of petroleum products are caused by a combination of scarcity and inflation.
Speculation from year to year also plays an enormous effect on the cost of a barrel of crude oil.
Diesel fuels the trucks and trains that crisscross the country, bringing goods and food to the 300 million people who live in the US.
It is the fuel of big industry and transportation, and without it, the society that we take for granted could not exist.
Like all commodities, diesel (along with other petroleum products) is subject to demand and speculation, causing the price to adjust accordingly.
When the price of fuel goes up, the prices of everything transported using this fuel must go up as well.
While the increase may seem minuscule, it can ultimately affect the overall cost of living.
For the seven-day stretch ending on December 27, the price of a gallon of diesel jumped 4.
6 cents nationally.
Some states that are particularly affected by rising gas prices saw even bigger jumps; California was the biggest hit, seeing prices rise by 6.
3 cents.
This last price jump of the year marks a 2010 trend of rising gas prices.
Diesel fuel started the year at $2.
797 per gallon, and ended the year at $3.
294, an increase of approximately 17.
7 percent over 2009's prices.
This must be taken with a grain of salt, though, as 2008-2009 saw the bursting of the petroleum investment bubble.
After record highs in gas prices, speculation caused a sudden downturn in average prices.
Increases in the cost of petroleum products are caused by a combination of scarcity and inflation.
Speculation from year to year also plays an enormous effect on the cost of a barrel of crude oil.
Source...