It was just a few months ago when gasoline prices were hovering at an average of slightly above $1.50 per gallon, while diesel fuel was well above $2 per gallon.
Gasoline prices have jumped since January and are comfortably above $2 but diesel has barely budged. What gives?
The Energy Information Administration said gasoline prices usually rise above diesel this time of year because of high demand in the summer, while distillate fuel prices, including diesel and heating oil, drop from their highs in the cold of winter.
Though the pattern broke down in 2005 and 2006, the EIA calls this “crossing of the price paths” a regular rite of spring.
Refineries are also operating well below capacity due to the drop in demand for gasoline. I suspect that the dip in production and resulting restriction in supply may also be impacting prices.
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