Fuel prices dip on news of supply gains

| 5/2/2005

The national average price for diesel fell slightly on May 2, according to the U.S. Department of Energy.

The average came in at $2.262 per gallon, down 2.7 cents from $2.289 per gallon the week before. That’s still up a considerable 54.5 cents from the same time period in 2004.

Regional prices saw declines as well, but California still posted the highest prices at $2.561, down less than a penny from $2.57 the previous week.

The rest of the West Coast posted an average of $2.53 per gallon.

Prices in the Midwest region saw the biggest drop, falling 3.6 cents to $2.194 per gallon, while prices in the Rocky Mountain region fell to $2.355 per gallon.

Along the East Coast, the average price came in at $2.264 per gallon, down about 2 cents from the week before. The New England region posted an average of $2.41 per gallon, while the Central Atlantic region came in at $2.366 per gallon. The Lower Atlantic region lived up to its name, posting the lowest average on the East Coast at $2.207 per gallon.

Prices in the Gulf Coast region, meanwhile, fell 2.2 cents to $2.209 per gallon.

A drop in the price of crude oil on the New York Stock Exchange was credited with the drop in fuel prices. In trading on May 2, prices for light, sweet crude fell below the $50 mark for the first time since February.

Experts said an increase in production from the Organization of Petroleum Exporting Countries – coupled with a boost in U.S. supplies – was the reason behind the dip in oil prices.