As the month of May comes to a close, diesel prices in the United States are as low as they’ve been since the end of January, according to the United States Energy Information Administration (EIA). Prices have been steadily falling throughout the entire month and fell five full cents from the end of April to the end of May. Diesel prices are now $3.925 across the United States with every region seeing a decrease from the end of April to the end of May.
Much of the decrease in diesel prices has to do with warmer temperatures after a big spike as temperatures dropped to record lows this past winter. Now that the weather is heating up, diesel prices seem to be dropping much closer to the levels expected at the beginning of the year.
Three regions in the United States saw diesel prices drop by more than five cents. The biggest drop in the United States came in New England, which still features the highest diesel prices in the country, but the gap between New England and the Central Atlantic region, which are very close to each other, and California is narrowing. In New England, prices dropped by nearly eight cents from the end of April ($4.208 to $4.13). The second biggest drop in the United States came in the Midwest where prices fell by more than six cents from $3.947 to $3.884, which marks the first time prices have been below $3.90 since late January. And the third region with a big drop in diesel prices is the aforementioned Central Atlantic region where prices fell from $4.185 to $4.127.
A few regions saw drops between three cents and five cents from the end of April to the end of May. The biggest decrease in diesel prices in this group came on the East Coast, which was hit hard by the cold temperatures in the winter. With prices dropping from $4.065 to $4.022, diesel prices in the East Coast are on the verge of dropping below $4 per gallon for the first time since late January. The least expensive diesel prices in the United States are in the Gulf Coast where prices fell by a bit more than four cents from month-to-month. Prices in the Gulf Coast fell from $3.824 to $3.783 in May. The Rocky Mountain region and California saw prices drop to $3.946 and $4.109 respectively. For the time being, California remains as not the most expensive diesel prices in the United States.
Two regions saw diesel prices fall, but only slightly as the West Coast as a whole featured prices dropping from $4.055 to $4.027. Prices on the West Coast have not been below $4 per gallon since mid-April, and that could change in the next few weeks considering the trend. On the West Coast without California, prices dropped $3.954 to $3.929, which represented the smallest decrease among United States regions in May.
Currently, diesel prices are expected to average $3.87 in 2014. To date, U.S. diesel prices have been significantly higher than that at $3.96. In order to reach the projected price, the average diesel price in the United States over the last seven months of 2014 would need to be $3.81, so either the projection will rise or diesel prices will continue to drop over the next few months in order to reach that projection.
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