Diesel price could drop $2 this year

According to the Energy Information Administration (EIA), the cost of diesel fuel in the United States has decreased to the level of January 31, 2022.

As of Tuesday, May 16, a gallon of diesel costs $3.98. The median price in California is $5.15 and the Gulf Coast is $3.59 per gallon.

The seasonal decrease in fuel consumption led to a decrease in prices.

“After the winter, we will continue to see diesel prices drop,” said Patrick De Haan, head of oil analysis at GasBuddy. “Unless there is an unexpected disruption or escalation of global events, diesel prices could be lower this summer than last summer, which is certainly good news for the economy and the transport sector.”

“The decline in diesel has been astounding,” he added. “We have seen an improvement in fundamentals over the past few months, with diesel prices down nearly $1 a gallon over the last 100 days, thanks in part to higher Fed interest rates, a containment economy, and a mild winter and curbing heating oil consumption.”

Industry analysts expect the price of diesel this summer could be $2 lower than the previous year.