NEW YORK -(Dow Jones)- The national average price of retail diesel fuel fell 1.8 cents a gallon to $2.928 a gallon in the week ended Monday, the U.S. Energy Information Administration said.
The price is the lowest since March 15. In the last five weeks, diesel-fuel prices have dropped 19.9 cents, or 6.4%. The declines came as crude-oil futures have fallen from near $87 a barrel in early May to near $75 a barrel due to concerns over high inventories and sluggish demand.
Diesel fuel is up 35.6 cents, or 13.8%, a gallon above a year ago.
Diesel is now priced at 38.5%, or $1.836 a gallon, below the record high level of $4.764 a gallon hit on July 14, 2008. Back then, diesel carried a premium to a year earlier of nearly $1.88 a gallon as crude-oil prices soared to record highs near $150 a barrel.
The EIA said in its June 8 Short-Term Energy Outlook that it expected diesel prices to retail at $2.91 a gallon in June, up from $2.53 a gallon a year earlier. So far this month, diesel prices are averaging $2.937 a gallon.
The agency also forecast crude-oil prices would average $76 a barrel this month, up from $69.74 a barrel a year ago. The price of crude oil accounts for 65% of the price of diesel.
Prices dropped in all regions, led by a decline of 3.1 cents in the Rocky Mountains region. California prices were unchanged in the week.
AAA Daily Fuel Gauge Report said Monday its survey put retail diesel prices at $2.964 a gallon nationwide, down 2.2 cents from a week earlier and 14.6 cents below a month ago.
Region Change Vs Price Week Ago Per Gallon East Coast -2.4c $2.949 Midwest -1.2c $2.892 Gulf Coast -2.5c $2.874 Rocky Mountains -3.1c $2.989 West Coast -0.4c $3.054 California unch $3.068
Copyright 2009 Dow Jones Newswires
Gas shortage no threat, but prices may riseOil Drops on Risk Aversion, Economic Worry
