Diesel prices inch closer to $4 per gallon   

Weekly retail on-highway U.S. diesel prices increased by 4.3 cents to $3.976 per gallon. In the 18 weeks since November 29, diesel prices have risen 81.4 cents from $3.162 and in only one of those weeks did prices decline. Diesel prices have risen 97% since bottoming out at $2.023 on March 16, 2009. A view of weekly prices over the last 3 years is ominous, as 2011 is starting off with much higher prices than seen in 2009 or 2010 (second graph). With the economy showing glimmers of hope and the Fed intent on a weak dollar to support exports, a return to 2008 diesel fuel prices is looking much more likely. Diesel prices peaked at $4.764 per gallon in July of 2008 and were above $3 per gallon from September 24, 2007 to November 3, 2008 (over 13 months) and have been back over $3 since October 4, 2010 (only 5 months).