Diesel Price Continues Dive, Down to $1.554 a Gallon

The national average price of diesel fuel fell for the fourth time in as many weeks, declining 4.8 cents a gallon to $1.554, the Department of Energy reported Monday.

The decline has been spurred by falling crude oil prices as fears about potential supply disruptions faded.

Crude oil has dipped to near 19-week lows as exports from Venezuela began flowing at near their pre-strike levels, a possible Nigerian strike was averted and the war in Iraq moved toward a possibly swift end.

Earlier in the day, the Associated Press said the Trilby Lundberg, a fuel analyst, said that the firming of supplies could lead to declines in fuel prices, even as we head into the summer driving season.

Gasoline prices fell 1.9 cents a gallon to $1.63, DOE said in its report.

Diesel fuel prices fell by an average of 5.49 cents a gallon in all of the regions that the DOE’s Energy Information Administration uses for its survey.

Since war broke out on March 20, diesel prices have fallen 19.8 cents a gallon, EIA’s historical statistics said.

The largest drop was found in New England where diesel prices plummeted 7.7 cents a gallon to $1.746, EIA said.

Each week, the EIA surveys 350 diesel-filling stations across the country to compile a nationwide snapshot of fuel prices.