Diesel hits a record $6.51 a gallon, up 93 cents in a month, as crude slips 3%

The average price of diesel in the United States reached $6.5107 a gallon on Monday, according to AAA, the highest national average the motor club has on record. That is up from $6.2301 a week ago, $5.5764 a month ago and $3.6958 a year ago.

Regular gasoline averaged $4.4786, up from $4.1092 a month ago and $3.1834 a year ago. Gasoline is still below its own record of $5.0165, set in June 2022.

How fast it moved

Diesel is up 28 cents in a week, 93 cents in a month and $2.82, or about 76%, from a year ago. OilPrice.com reported that the national average first crossed $6 only about two weeks ago, and tied the jump to tight fuel supply from the Middle East and Russia with Brent crude around $100 a barrel.

The government's weekly survey tells the same story. The Energy Information Administration put on-highway diesel at $6.285 for the week of September 14, with the West Coast at $7.250 and California at $8.039. The Gulf Coast was the cheapest region at $6.027.

Crude is falling, pump prices are not yet

Oil moved the other way on Monday. West Texas Intermediate crude was down about 3.1% near $96.82 a barrel and Brent was down about 2.5% near $101.55 in morning trading, according to the Chronicle's live market data, extending the slide we covered on Sunday night as Saudi crude started moving through the Gulf again. Retail fuel prices usually trail crude and wholesale moves, so a lower oil price takes time to reach the pump, if it holds. The crude oil chart tracks the move.

What it means for businesses and borrowers

Diesel is the fuel of freight, farm equipment, construction and delivery, so its price feeds into what almost everything costs to move. In plain money, every 1,000 gallons now costs about $934 more than a month ago and about $2,815 more than a year ago. Fleet operators, contractors and anyone paying fuel surcharges will feel that before it shows up in official inflation numbers.

It also matters for rates. The Federal Reserve raised its target range to 3.75% to 4% last week, citing inflation that is too high. Energy costs this high make the next inflation readings harder to bring down. The next consumer price index report is due October 14, according to the economic calendar.

Sources: AAA national average gas prices; EIA Gasoline and Diesel Fuel Update; OilPrice.com; Chronicle live market data. This is market information, not investment advice.