Fuel continues downward trend to $3.85

| 7/5/2011

On highway diesel averaged $3.85 this past week according to the U.S. Energy Information Administration. That’s down nearly 4 cents for the week and down 27 cents since prices peaked in early May.

The EIA reported the biggest drops west of the Rockies, with California prices falling more than 8 cents a gallon to $4.065 for the week ending Monday, July 4. The weekly averages were reported on Tuesday.

The West Coast region saw a drop of 7.6 cents for the week as diesel fell below the $4 mark for the first time there since early March.

Of the EIA’s nine regions, New England and California are the only ones still averaging above  $4 per gallon.

Following are the weekly averages posted by the EIA:

U.S. – $3.850, down 3.8 cents
East Coast – $3.870, down 4.4 cents
New England – $4.009
Central Atlantic – $3.978, down 3.6 cents
Lower Atlantic – $3.812, down 4.8 cents
Midwest – $3.818, down 2.4 cents
Gulf Coast – $3.798, down 3.6 cents
Rocky Mountain – $3.851, down 3.4 cents
West Coast – $3.993, down 7.6 cents
California – $4.065, down 8.1 cents

According to daily tracking site ProMiles, the national diesel average was at $3.866 on Monday, down two-tenths of a cent since Friday.

Just seven states are averaging above $4, taxes included, with the highest being Connecticut at $4.211 per gallon. The cheapest tax-included average on Monday was South Carolina at $3.691.

In oil news, prices for light sweet crude were on the rise Monday on the New York Mercantile Exchange. August futures were trading at $96.85 at midday, up nearly $2 since Friday.

Reuters says the uptick in oil prices was due to traders resuming activity following the long U.S. holiday weekend.