Diesel Prices Dip to Lowest Level in 11 Years

Diesel fuel prices fell to an 11-year low this week.

The U.S. Energy Information Administration reported that the U.S. average retail price for diesel fuel was $1.98 per gallon as of Monday. It was less than $2 per gallon for the first time since Feb. 14, 2005.

The government agency said the decline results from both decreasing crude oil prices and increasing inventories of crude oil  worldwide.

Those trends also have affected U.S. average prices for regular gasoline. It’s at $1.72 per gallon.

In most states – California with its own gasoline formulation rules is an exception – diesel prices are higher than gasoline prices. That’s because of global demand for diesel, federal fuel taxes that are six cents per gallon higher than those for gasoline and the higher expense of making the of ultra-low sulfur diesel required by federal regulations, the agency said.


 

Diesel Prices Dip to Lowest Level in 11 Years

(Chart: U.S. Energy Information Administration )


EIA generates its price data from a statistically representative sample of 403 retail truck stops and service stations across the contiguous United States. The stations are surveyed each Monday and report their self-serve cash-only prices, including all taxes, as of 8:00 a.m. local time.

The agency said it expects diesel prices to remain at low, averaging $2.22 per gallon this year and $2.58 per gallon in 2017.

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