Diesel Price Skyrockets in Northeast

An increase of 39.5 cents a gallon in the New England region helped push the national average price of diesel fuel up 11.1 cents, according to figures released Jan. 24 by the Department of Energy.

Diesel fuel prices surged in the Northeast as cold weather pinched heating oil supplies. The price in the New England region skyrocketed to $1.836 from $1.441 a week earlier.

Tom Kloza, editorial director of the Oil Price Information Service, said recent wholesale price hikes will bite truckers as diesel is diverted to satisfy the increased demand for heating oil in the region. The average cost of diesel went from $1.385 to $1.694 in the Central Atlantic region, pushing prices throughout the East Coast up from $1.312 to $1.505.

Led by the sharp increase in the Northeast, the national average price of diesel jumped $1.418 from $1.307 a gallon.

Kloza warned in a press release that that the tight supply in the Northeast might not ease until February. "Refiners and traders are racing to get fuel to the market, but the system may not be comfortable for two weeks or more. Until then, look for price spikes and tremendous volatility," he said.

The rate hikes have triggered a strong response from the trucking industry. In a letter Monday to New York Gov. George E. Pataki, New York State Motor Truck Association President William G. Joyce Jr. complained about the jump in diesel prices and urged the governor to take action.

"The price of diesel fuel jumped from $1.449 last Thursday to $1.729 on Friday and is up to as high as $2.059 today," Joyce said. "I urge you to take whatever steps are necessary to determine the cause of this problem and eliminate any possible profiteering."