Diesel Price Dips Below $1

Diesel prices have dropped below $1 a gallon for the first time since at least 1994, when the Energy Information Administration began compiling diesel price information.

The national average price was 98.6 cents per gallon on Dec. 7, down from $1.004 the previous week and the lowest since Aug. 31, when prices hit $1.00 a gallon. Prices spiked upward through September until cresting in early October, according to EIA.

“Adjusted for inflation, it’s probably the lowest diesel has ever been,” said Bob Costello, director of economic analysis and statistics at American Trucking Associations. He attributed the record lows to a worldwide oil surplus despite reduced production. The worldwide distillate fuel inventory was 148.7 million barrels last week, down slightly from 152.8 million barrels in September — the highest levels in seven years, according to the American Petroleum Institute.