Diesel Futures Crash 55 Cents, But Pump Prices Keep Climbing

Key Details Diesel futures plummeted more than 55 cents per gallon Monday on the CME commodity exchange, marking what appears to be the largest single-day decline since the contract's inception in 1979. The sharp drop contrasts sharply with price movements during the 2020 COVID crisis, which saw gradual declines, and the 1991 Gulf War period, which operated from a much lower price base. Why It Matters Futures price changes take time to reach the pump, and Monday's dramatic selloff has not yet provided relief at the tank. The Department of Energy/Energy Information Administration reported retail diesel climbing 30.4 cents to $5.375 per gallon Tuesday, marking the 10th consecutive weekly increase. This represents the highest price since October 2022. Current Situation AAA's daily average hit $5.345 per gallon Tuesday, up 6 cents from Monday and $1.587 per gallon since February 28. The last three weeks of increases, following Middle East military action, have added $1.47 per gallon total. Tuesday morning, ULSD futures recovered roughly 40% of Monday's decline, suggesting additional volatility ahead before relief reaches driver fuel surcharges.