Diesel continues decline, while gas prices increase

The average price for a gallon of diesel in the U.S. was $2.422 per gallon today.

The Trucker Staff

12/15/2008

The weekly retail on-highway diesel price average today dipped to $2.422 per gallon, down $0.093 from last week. Gasoline prices began to increase slightly after weeks of falling prices, according to Energy Information Administration (EIA).

This week’s diesel average was down $0.887 per gallon from the same week one year ago.

The cheapest price this week was the West Coast at $2.303 per gallon, down $0.118 per gallon. California was even less at $2.292 per gallon, down a whopping $1.134 per gallon from a year ago.

The most expensive place to buy diesel today is in the New England region at $2.740 per gallon, down $0.109 from a week ago.

Each region’s diesel average price decreased this week.

A three week comparison of diesel prices by region may be viewed here.

The short-term energy outlook, according to the EIA:

• The current global economic slowdown is now projected to be more severe and longer than in last month’s Outlook, leading to further reductions of global energy demand and additional declines in crude oil and other energy prices.

• The monthly average price of West Texas Intermediate (WTI) crude oil has fallen by more than half between July and November, reflecting the fallout from the rapid decline in world petroleum demand.  The annual average WTI price is now projected to be $100 per barrel in 2008 and $51 in 2009.

• The average U.S. prices for regular-grade gasoline and diesel fuel, at $1.70 and $2.52 per gallon respectively on December 8, were both more than $2 per gallon below their highs in mid-July.  With the assumption of a fragile economy throughout 2009, along with lower projected crude oil prices, annual average retail gasoline and diesel fuel prices in 2009 are projected to be $2.03 and $2.47 per gallon, respectively. 

• Residential heating oil prices during this current heating season (October though March) are projected to average $2.53 per gallon, a reduction of 24 percent from the 2007-2008 heating season. Residential propane prices are projected to average $2.10 this winter, a decrease of 14 percent from last winter. Residential natural gas prices are projected to average $12.56 per thousand cubic feet (Mcf), a decrease of 1.3 percent from last winter.

The U.S. economic recession is also contributing to lower natural gas wellhead prices. The Henry Hub natural gas spot price is projected to decline from an average of $9.17 per Mcf in 2008 to $6.25 per Mcf in 2009.

Barb Kampbell of The Trucker staff can be reached for comment at barkkampbell@thetrucker.com.