The national average price for a gallon of diesel collapsed the week ending Sept. 10, falling 11 cents to $2.857, according to the Energy Information Administration.
According to the Oil Price Information Service (OPIS), which tracks fuel prices daily, today diesel prices dropped 1.6 cents nationwide to $2.969.
An OPIS energy expert told FleetOwner that wholesale prices are continuing a downward trend, which means retail prices are set to dip in the weeks ahead.
“The falling diesel prices are the result of lower crude oil prices, lower heating oil futures, the fact that there hasn’t been any hurricanes affecting our infrastructure, and refiners in Texas and Louisiana are operating at strong levels,” said Denton Cinquegrana, OPIS markets editor.
Prices took the steepest dive in the Midwest, falling 15 cents to $2.787. Prices were the most stable in California, where on Sept. 1 diesel retailers were required to switch to ultra-low sulfur diesel, as prices dropped five cents to $3.125. The Rocky Mountain region remained the most expensive region in which to fill up at $3.236 in spite of an 8.2-cent drop. The cheapest diesel was in the Lower Atlantic region at $2.757, after a 9.3-cent drop.
“We’ll certainly see a drop in diesel prices in the next couple of weeks; probably by a nickel or so,” Cinquegrana said. “Since a month ago, diesel is down about 16 cents and from yesterday 1.6 cents. Even on a year-over-year comparison prices are relatively similar,” he added.
Lower crude oil prices and strong refinery output in Texas and Louisiana have been key factors in the falling prices, Cinquegrana said.To comment on this article, write to Terrence Nguyen at [email protected]