Diesel Prices Down, Gas Prices Up
Since late April the price of diesel has been on a constant decline. Oil firms are lowering the diesel price so they can raise the price of regular gasoline. Since May 2 the national average price has fallen 27.4 cents and is at its lowest level since March 7. In all areas across the U.S. diesel prices have been dropping, even in the Rocky Mountain region which showed no change through the first 2 weeks or so of the start of the price decline.
The National on-highway diesel prices fell by 2 cents the first week of May to $4.104, according to the Energy Information Administration, while the Rocky Mountain region showed no change and the Gulf Coast dropped the most, down 3.8 cents to $4.022, the cheapest nationwide. The price decline of diesel is great for truckers and others using diesel, but not so good for regular commuters who go for unleaded or other types of regular gasoline.
Oil prices may continue to rise this week due to recent floods in the New Orleans-to-Baton Rouge region, which has 11 refineries with a combined capacity of 2.5 million barrels a day, or 13% of U.S. output. In the last week of May, The national average for on-highway diesel prices decreased yesterday just shy of a nickel, 4.9 cents, over last week. Meanwhile, oil prices rose about 2 percent.
Just last week, the national average price dropped 3.8 cents to $3.85. The California average price dropped 8.1 cents to $4.065, while the rest of the West Coast decreased 7.6 cents to $3.993. California and New England remain the only areas above $4 a gallon. The national average price is 92.6 cents higher than a year ago. The record diesel price was $4.764 in July 2008. Will prices continue to fall or will we see another summer like 2008? Only time will tell.