LITTLE ROCK, Ark. — For the first time since early October, the average price across the nation for a gallon of diesel fuel sits below $4 per gallon — but just barely.
According to the Energy Information Administration (EIA), as of Dec. 5, the cost sat at $4.967.
That’s down from $5.141 on Nov. 28 and $5.233 on Nov. 21.
According to energy experts, oil and fuel prices are falling because demand is falling as countries brace for recession and rising coronavirus cases in China, which could disrupt America’s supply chain. EIA officials say that diesel could remain below $5 per gallon on average throughout 2023, with average monthly prices dipping to near $4.
In California, which has the highest fuel prices in the nation, a proposal to fine big oil companies for making too much money is being addressed in the Legislature.
Gov. Gavin Newsom and his Democratic allies in the state Legislature introduced the proposal Monday as lawmakers returned to the state Capitol in Sacramento for the start of a special legislative session focused solely on the oil industry.
Gas and diesel prices are always higher in California because of taxes, fees and environmental regulations that other states don’t have. But in October, the average price of a gallon of gasoline in California was more than $2.60 higher than the national average — the biggest gap ever.
Diesel has been above $6 a gallon on average in California since March. It finally dropped below $6 threshold on Dec. 5 at $5.816.
Meanwhile, benchmark U.S. crude oil for January delivery fell $2.68 to $74.25 a barrel Tuesday. Brent crude for February delivery fell $3.33 to $79.35 a barrel.
The Trucker News Staff produces engaging content for not only TheTrucker.com, but also The Trucker Newspaper, which has been serving the trucking industry for more than 30 years. With a focus on drivers, the Trucker News Staff aims to provide relevant, objective content pertaining to the trucking segment of the transportation industry. The Trucker News Staff is based in Little Rock, Arkansas.