Diesel Jumps 2.9¢ a Gallon to $3.147

(Transport Topics) – The U.S. average retail price of diesel climbed 2.9 cents to $3.147 a gallon, and crude oil prices pushed past $65 a barrel to post a six-month high, the Department of Energy reported April 22.

Diesel now costs 1.4 cents more than it did a year ago, when the price was $3.133, DOE said.

Regional diesel prices rose everywhere, with the highest coming in California, where the average price climbed 3.6 cents a gallon to $4.003. That was 18.8 cents higher compared with a year earlier.

Also last week, the national average price for regular gasoline climbed 1.3 cents to $2.841 a gallon, DOE’s Energy Information Administration said.

The national average is 4.3 cents more than a year ago, EIA said.

Regional average prices were mixed, falling in three areas and climbing in six others.

Oil climbed as the U.S. government said it will no longer renew waivers for select countries that had been buying Iranian oil that is otherwise under sanctions.

“Our goal has been to get countries to cease importing Iranian oil entirely. Last November, we granted exemptions from our sanctions to seven countries and to Taiwan. We did this to give our allies and partners [time] to wean themselves off of Iranian oil, and to assure a well-supplied oil market,” Secretary of State Mike Pompeo said April 22.

But no exemptions will be granted now.

“We’re going to zero, going to zero across the board. We will continue to enforce sanctions and monitor compliance. Any nation or entity interacting with Iran should do its diligence and err on the side of caution. The risks are simply not going to be worth the benefits,” he said.

Pompeo noted the U.S. government’s decision used “the highest possible care” to ensure market stability.

West Texas Intermediate crude futures on the New York Mercantile Exchange closed at $65.70 per barrel April 22, compared with $63.40 on April 15.