Diesel Prices Hit 2-Year High as 12-Week Rally Continues

Key Details The DOE/EIA benchmark diesel price climbed 24.2 cents per gallon this week to $5.643/g, marking the 12th consecutive week of increases. The price hasn't been this high since July 2022, when it reached $5.675/g during the post-pandemic inflation surge. Why It Matters Over the past 12 weeks, diesel has added $2.184 per gallon to your fuel costs. These benchmark prices directly impact fuel surcharges for fleets nationwide, affecting your bottom line and freight economics. The consistent upward trend suggests no immediate relief in sight. Market Signals ULSD futures traded around $4.41/g Tuesday morning, up nearly 2% from Monday's close. However, the real story is in the physical markets, where crude oil is in severe backwardation - meaning near-term delivery prices are significantly higher than futures contracts. This structure indicates strong demand and tight supply conditions. Future Outlook With no signs of weakness from commodity exchanges and physical market strength outpacing futures prices, expect the rally to extend to at least 13 weeks. Market dynamics suggest a stunning turnaround would be needed to break this trend, and current indicators point to continued upward pressure on diesel costs.