The average price of diesel fuel in the United States has fallen below $6 per gallon for the first time in two months. On Saturday, the national average reached $5.998 per gallon, according to GasBuddy data.
The decline follows a sharp price increase in September. Diesel crossed the $6 threshold on September 10, reaching a record $6.519 per gallon on September 22. In California, prices temporarily exceeded $10 per gallon due to limited refinery capacity and stricter fuel requirements.
Weaker demand and cheaper oil
Patrick De Haan, head of petroleum market analysis at GasBuddy, points to seasonal factors as one of the reasons for the change. “Demand typically weakens in the fall,” he says, adding that the end of hurricane season reduces the risk of disruptions to refinery operations along the Gulf Coast.
By November, most scheduled refinery maintenance has usually been completed, allowing production levels to recover. Falling crude oil prices are also putting additional pressure on prices. Brent crude futures have declined by 18.5% over the past two weeks.
The impact on transportation
Diesel is the primary fuel for trucks, agricultural machinery and a range of industrial activities. As a result, high prices increase transportation and freight costs, with the pressure also being passed on to consumers, farmers and businesses.
The decline in diesel prices follows a drop in gasoline prices. The average price of gasoline in the United States fell below $4 per gallon in November for the first time since August 10, according to GasBuddy data.
Reuters reports that the retreat in fuel prices is linked to weaker seasonal demand, lower oil prices and the recovery of refinery production. Nevertheless, diesel remains significantly more expensive than before the sharp price increase in September.
Sources: au.investing.com