The cost of diesel fuel, on track with many other construction industry expenses, saw a 20% increase in the last month, according to new figures just released by the Bureau of Labor Statistics.
While that double-digit jump is by any means significant, the real increase is seen when the March numbers are compared to where things stood exactly a year ago. According to the BLS, diesel fuel prices are now up by 64% from where they were in March of 2021.
The BLS survey shows similar and almost unprecedented increases for a variety of goods, with steel mill products up by 43% over a year ago; plastic construction products up by 35%; and lumber and plywood seeing a 21% jump.
The diesel prices were up in all sections of the country, according to a survey published by the federal Energy Information Administration. The EIA is also forecasting that diesel prices increase significantly in early summer.
In its Summer Fuels Outlook report, the EIA notes that consumption of diesel, as well as gasoline, “typically peaks during the summer months.”
The report adds: “Heading into this summer, economic recovery from the Covid 19 pandemic and increased levels of geopolitical risk have driven up petroleum market prices and volatility.”
Supply challenges, meanwhile, are in many ways dependent upon a “wide range of possible outcomes for the production and availability of Russian crude oil.”
According to the American Trucking Association, more than half the cost of a gallon of diesel is attributed to the price of crude, adding that while those prices are currently just over $100 a barrel, they are expected to reach $185 per barrel later this year.
By Garry Boulard
