Diesel prices skyrocket to the $2 gallon point
March 3, 2005 by Tom Bacon, Spokane Public Radio
Inland Northwest drivers are beginning to wince every time they pull up to fill up, with unleaded gasoline prices again nudging $2 a gallon.
As bad as that is, diesel prices are even higher, right now at record highs of $2.60 a gallon in Spokane.
It wasn’t too long ago that diesel prices were lower than gasoline prices. But Dave Overstreet of the Spokane AAA said the fuel markets have been changing over the past year or so.
“Most recently we have actually seen record diesel prices around the country, and in the Northwest we just hit a record price for diesel about a week ago,” he said.
Overstreet said the most immediate culprit in the diesel cost spike is an explosion that crippled production in an Alberta refinery. Once that’s back on line, and once refineries switch over to normal spring production, he anticipates prices easing somewhat.
“That doesn’t mean the prices aren’t going to be high, because they’re higher everywhere in the country, and I anticipate that they will continue to be high, at least for the short term,” he said.
Overstreet said that crude oil prices, now at $50 a barrel and more, are the main driver of high fuel prices, both for diesel and gasoline. At this time last year, diesel prices were about 82 cents a gallon less than they are now.
http://www.kpbx.org/news/mar05/Diesel%20prices.htm