Diesel scores stunning drop

Sept. 19, 2006
The average cost for a gallon of diesel for the week ending Sept. 17, 2006 dropped 14.4 cents to $2.713

The average cost for a gallon of diesel for the week ending Sept. 17, 2006 dropped 14.4 cents to $2.713, according to the Energy Information Administration. This makes the average price 1.9 cents lower than for the same week last year. And that marks the first time prices have been lower than a year before since the week ending March 21, 2004, an EIA economist told FleetOwner.

For the week ending March 21, 2004, diesel prices were $1.641.

All regions posted a double-digit decline in prices, but the Rocky Mountain region saw the steepest drop, down 18.4 cents to $3.052. In spite of this, the Rocky Mountain region remains the most expensive in which to fill up. Prices were the most stable in the Central Atlantic region, sliding 11.4 cents to $2.844. The cheapest region in which to fill up was the Midwest at $2.624 after a 16.3-cent rollback.

“Crude oil prices have been falling a lot,” Neil Gamson, EIA economist told FleetOwner, noting that prices had fallen since a $77/barrel high over the summer to about $63/barrel. Hurricanes Katrina and Rita, which had devastated the nation’s energy infrastructure and caused massive price spikes, was also a factor in the year-over-year price relief since this year the hurricane season is relatively quiet so far, Gamson added.

“Supply is adequate and right now there’s no competition from heating oil because the weather has been mild,” Gamson said. “If it gets cold in November or December in the East, we expect diesel prices will go up.”

To comment on this article, write to Terrence Nguyen at [email protected]

Voice your opinion!

To join the conversation, and become an exclusive member of FleetOwner, create an account today!

Sponsored Recommendations

Leveraging telematics to get the most from insurance

Fleet owners are quickly adopting telematics as part of their risk mitigation strategy. Here’s why.

Reliable EV Charging Solution for Last-Mile Delivery Fleets

Selecting the right EV charging infrastructure and the right partner to best solve your needs are critical. Learn which solution PepsiCo is choosing to power their fleet and help...

Overcoming Common Roadblocks Associated with Fleet Electrification at Scale

Fleets in the United States, are increasingly transitioning from internal combustion engine vehicles to electric vehicles. While this shift presents challenges, there are strategies...

Report: The 2024 State of Heavy-Duty Repair

From capitalizing on the latest revenue trends to implementing strategic financial planning—this report serves as a roadmap for navigating the challenges and opportunities of ...