Diesel Price Falls Again, but Cold Weather Could Reverse Trend

The average price of diesel fuel slid 3 cents per gallon last week to $1.143, the Department of Energy said Monday, but the arrival of colder weather could force the price back up.

The DOE's report showed that the diesel price dropped for the 13th consecutive week and brought the price to the lowest point since July 26, 1999, when diesel cost $1.137 per gallon.

At the same time, the price of gasoline decreased by 3.6 cents per gallon to $1.059. While the biggest trucks run on diesel fuel, a significant portion of the commercial trucking business is carried out in trucks that use gasoline. Both fuels impact the cost of truck service.

The price of both fuels have been in a tailspin since mid-September, when the terrorist attacks sparked a decline in travel and created a surplus of oil products. Since the week of Sept. 17, the price of diesel has fallen a total of 38.4 cents per gallon. Over the last four weeks, it has dipped 10.9 cents.

However, the Oil Price Information Service said Monday that it has been told the last week of December will feature temperatures that are below normal for much of the nation. As a result, heating oil futures and diesel bulk market prices are beginning to rise again, OPIS said.

DOE said Monday that after a one-week hiatus, the price of diesel once again fell in every one of its Petroleum Administration for Defense Districts and subdistricts.

The lowest prices for diesel fuel in the United States remains the Gulf Coast area, where the price fell 3.3 cents last week to $1.096 per gallon.

The largest decline across a whole district was seen in the Rocky Mountains, DOE said. Diesel fuel in that district is $1.124 per gallon, after a decline of 4.5 cents last week.

Other notable drops in the price occurred in the Midwest and along the Gulf Coast, where the price fell 3.6 cents per gallon and 3.3 cents per gallon, respectively.

The West Coast saw the price of diesel decline by 2.4 cents last week. Its average price stands at $1.190 per gallon.

The DOE’s Energy Information Agency surveys 350 fueling stations in five districts at the start of each week, and usually reports the results on the same day that it polls the stations.

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