Diesel prices drop to lowest in two months

By Land Line staff | 7/25/2016

The average price of a gallon of on-highway diesel went down 2.3 cents to $2.379 per gallon for the week ending Monday, July 25. This marks the fifth decrease in five weeks, including an unchanged national average four weeks ago. The national average is the lowest since May 23 when prices were $2.357.

Diesel price averages went down in all 10 regions in the U.S., according to the Energy Information Administration. The largest average decrease was in the West Coast less California region, where prices at the pump fell by 3.3 cents per gallon. Prices were down one-tenth of a cent in the Rocky Mountain region, the smallest decrease in the nation.

Following are the average prices by region as reported by the EIA:

  • U.S. – $2.402, down 2.3 cents
  • East Coast – $2.411, down 2.4 cents
  • New England – $2.446, down 1.2 cents
  • Central Atlantic – $2.503, down 2.2 cents
  • Lower Atlantic – $2.332, down 2.6 cents
  • Midwest – $2.369, down 2.8 cents
  • Gulf Coast – $2.262, down 2.0 cents
  • Rocky Mountain – $2.435, down one-tenth of a cent
  • West Coast – $2.686, down 2.3 cents
  • West Coast less California – $2.569, down 3.3 cents
  • California – $2.780, down 1.6 cents

According to ProMiles, the average retail price of diesel at truck stops was $2.339 on Monday morning, a 2.7-cent decrease from last week.

ProMiles, the software company that maintains the websites ProMiles.com and TruckMiles.com, continues to offer its own weekly fuel price information. The company’s fuel price data are presented in the same format used by the EIA in the agency’s weekly reports. The prices include a national average as well as regional averages, and comparisons to the previous week and the previous year.

A key difference between the EIA and ProMiles reporting is the type and number of fueling stations the company surveys in order to calculate its averages. While EIA surveys 400 truck stops and convenience stores nationwide, ProMiles uses its direct feed from thousands of truck stops to develop its averages.

TruckMiles.com listed the daily average price for Monday at $2.409, with truckers in Rhode Island paying an average of $2.799 per gallon, the highest in the nation. Truckers in Missouri are paying a national low of $2.154 per gallon, according to the site. No states in the Lower 48 states have been listed in excess of $4 per gallon at the pump since Dec. 4, 2014. All 48 states in the contiguous U.S. have average prices below $3. For the 13th consecutive week, no states are reporting average diesel prices below $2.

In separate energy news, according to the New York Mercantile Exchange, light sweet crude (also known as West Texas Intermediate) for September delivery was trading at $43.01 at noon CDT on Monday, a $2.23 decrease from last Monday and a $1.18 decrease from its last settlement price. The price of Brent crude oil for September settlement was listed at $44.57, a $2.39 decrease from last Monday and a $1.12 decrease from its last settlement price.

Reuters reports Monday’s decrease of nearly 3 percent at noon CDT was a reaction to reports of an inventory increase of more than 1 million barrels at the Cushing, Okla., oil trading hub. Investors’ fear of a global glut has returned in the past several days. AAA has indexed diesel prices at $2.338 for Monday, 43.7 cents cheaper than this time last year and 3.5 cents lower than a month ago.

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