Gas Is Cheap For Holiday Travelers, But Truckers Buying Diesel Pay The Price

Energy companies are refining an excess of gasoline, at the expense of diesel, which is driving up the cost of transporting goods across the country.

By Alexandra HartNovember 19, 2018 1:19 pm,

Here’s something holiday travelers can be to be thankful for this week: consumer gas prices are still low, and dropping. According to AAA, gas prices in Texas average $2.32, which is about 30 cents less than a month ago. But it’s a different story for those who rely on diesel to get around. Matt Smith, director of commodity research at ClipperData, says diesel prices are up because of demand.

“So, demand for diesel is strong, the economy is chugging along, we’re seeing a lot of goods being transferred around the country by these vehicles, so that’s a good thing, But because of that, because of export demand, we’re seeing inventories relatively in check,” Smith says.

In a nutshell, that means that because the economy is doing well, there’s higher demand for diesel to fuel the vehicles that transport all the things people are buying.

What you’ll hear in this segment:

– How Texas energy companies are moving more of their materials around by truck and train, adding to the demand for diesel

– What explains the difference in price between gasoline and diesel

– How light sweet crude oil is contributing to a gasoline glut, and thus lower prices

Written by Caroline Covington.