Fuel Expert Says Diesel Prices Race Higher With No End in Sight
The continuing war between Russia and Ukraine has lead to higher oil and gas prices in this country, with diesel prices rocketing higher, and no end in sight.
KGVO News spoke with petroleum analyst Patrick DeHaan with Gas Buddy who provided current gas prices in Missoula.
“We are looking at a resurgence in gasoline prices,” began DeHaan. “The statewide average in Montana today is coming in at about $4.18 a gallon and that's up about eight cents from last week. Missoula prices are also up quite a bit here in the last week, the average now about $4.14, and that's up 10 cents from a week ago.”
However, DeHaan saved his superlatives for the increasing price of diesel fuel.
“The story is really all about diesel and what we've seen is diesel prices that have absolutely soared across the country,” he said. “The average price for diesel now statewide in Montana is all the way up at about $5.33 a gallon and that’s pretty impressive. In Missoula, the average diesel price is just a little bit less at about $5.29, but prices have gone back up. Oil prices have gone back up. They're up another $5.00 a barrel today on word that the EU is likely going to sanction Russia's oil.”
DeHaan said the basic economics of supply and demand have caused diesel prices to soar.
“We've seen another resurgence in the last week or two as diesel inventories continue to plummet,” he said. “Diesel inventories are now at their lowest since 2008, and a lot of those increases have yet to be funneled down to the end user, whether that be at the grocery store, the hardware store, or at the clothing store. A lot of these costs haven't really even been passed along fully to the end user, and so this is further going to feed inflation across all chapters and avenues of the economy.”
DeHaan said all aspects of the economy are being battered by the continuing surge in diesel prices.
“The stars continue to align that we are going to continue to be under pressure from Russia's war on Ukraine, and the 10 million barrels a day that Russia had produced are likely to no longer make it to the market as a result of sanctions,” he said. “So we are in kind of a new chapter here, and that could last to the end of the year and into next year, so long as Russia is still actively fighting a war against Ukraine.”
DeHaan said there are ways to save money on gas, by getting credit cards that provide gas discounts, combining trips and the most basic cost saving measure of all, slow down and you will save gas.