Diesel fuel retail prices have fallen below $2 per gallon for first time since 2005.
Data from the Energy Information Administration reveals the US average retail price for on-highway diesel fuel was $1.98 per gallon (gal) on February 15, falling below $2/gal for the first time since February 14, 2005.
The US average retail diesel price had last approached, but not gone below, the $2 mark in early 2009. Falling diesel prices reflect both decreasing crude oil prices and increasing inventories of crude oil and refined products worldwide.
Average regular retail gasoline prices moved below the $2/gal mark a little over a month ago.
In recent years, diesel prices have tended to be higher than gasoline prices, reflecting strong global demand for diesel, federal fuel taxes for diesel that are six cents/gal higher than those for gasoline, and the higher production cost of ultra-low sulfur diesel.
Diesel prices tend to vary less by region than gasoline prices.
EIA surveys a statistically representative sample of 403 retail truck stops and service stations across the contiguous United States each week for on-highway diesel prices.