Diesel Tumbles 4.8 Cents to $2.867 a Gallon; Gas Dips 0.2 Cent

he average national price of retail diesel fuel fell 4.8 cents to $2.867 a gallon, the biggest decline this year, the Department of Energy reported Monday.

The second straight decline — which was the biggest since a 5.4-cent drop Dec. 5 — follows last week’s 0.3-cent dip, a 2.8-cent gain two weeks ago and a 0.8-cent increase three weeks ago.

Gasoline, meanwhile fell just 0.2 cent to $2.869 a gallon, nearly matching the diesel price, DOE said.

The price has see-sawed through the halfway point of 2006, gaining in 16 weeks and falling in nine since Jan. 2. The steepest run of gains was the five-week period following March 27, when it shot up 35.5 cents to $2.92.

Diesel’s all-time record was $3.157 a gallon set last Oct. 24, while gasoline’s was $3.069, set Sept. 5. Both records followed the big hurricanes that hit the Gulf Coast oil-producing region.

Crude oil prices have also risen sharply this year, from below $60 a barrel at the end of last year — and a low of $57.65 in mid-February — to more than $70 through much of April and May.

Prices topped $70 through most of last week and benchmark light sweet crude oil futures closed at $71.80 on the New York Mercantile Exchange Monday, Bloomberg reported.

For the week, diesel average prices declined in all five national regions, led by a 5.8-cent drop in the Rocky Mountains to $2.96 and a 4.9-cent decline on the West Coast to $3.068.

California, which DOE breaks out separately from its regional prices, remained the most expensive, at $3.14, down 4.5 cents from last week.

The Gulf Coast saw the smallest decline, falling 3.7 cents to $2.822.

Each week, DOE surveys 350 diesel filling stations to compile a national snapshot average price.