The national average price for diesel dropped for the week ending Aug. 28, the second straight week prices fell, reports www.landlinemag.com. The U.S. Energy Info Agency reported the national average price at $3.027, down from $3.033 a week ago. It's also 43¢ higher than a year ago.
The biggest drop was in California where average price fell 2¢/gal. to $3.200. Rocky Mountain region truckers pay the nation's highest average at $3.346, while the West Coast is at $3.229/gal., the East Coast at $2.955, the Lower Atlantic at $2.897, and the Gulf Coast region at $2.923/gal.
Meanwhile, gasoline prices are falling fast and could keep dropping for months, reports USA Today. An Aug. 31 report quotes Fred Rozell, Oil Price Information Service gasoline analyst, as saying gasoline prices will "be closer to $2 than $3 come Thanksgiving." The American Automobile Association reported a nationwide average of $2.84/gal. of gasoline on Tuesday, the lowest since April 20.
The factors behind the current drop are listed as: the end of summer, sluggish demand, and a sell-off of holdings by petroleum traders worried that high prices won't last, the report says.
-- Joe Roybal