Fuel Price Continues Its Retreat

Related Stories Fuel prices slip, end 7-week rise. (April 25) Fuel price spike flattens out. (April 19) Fuel prices rise again, near surcharge level. (April 12) Software can help find cheaper diesel. (April 5) Fuel prices continue to climb. (April 5) Diesel fuel price hits 15-week high. (March 23) Diesel prices edge upward. (March 4) Diesel fuel price dips below $1. (Dec. 14) Go to our Diesel Fuel Price Section. (Note: To return to this story, click the "Back" button on your browser.)

The national average retail price of diesel fuel retreated for the second straight week, to $1.078 a gallon, amid predictions that the price of oil will stabilize well below historic highs — and stay at moderate levels for as long as 15 years.

The week of April 19 saw the first reversal after seven weeks of diesel price increases that took the national average from a low of 95.3 cents a gallon — adjusted for inflation, the lowest price since 1947 — to a high of $1.084.

The April 26 level of $1.078 was 0.2 cent below the April 19 mark of $1.08 a gallon for diesel.

When prices topped $1.07 cents a gallon on April 4, they exceeded the threshold for fuel surcharges established in many truckload carrier contracts. However, nearly all carriers contacted said they were reluctant to add the charges for competitive reasons.

In California, where price increases were highest, a few truckers reported that customers refused to pay surcharges.

Bob Costello, director of the Economic and Statistical Analysis Department of American Trucking Associations, said he thinks the market is “much more pessimistic than before about the prospect of production cuts by members” of the Organization of Petroleum Exporting Countries.

Even if production is cut somewhat, Costello said he doesn’t expect dramatic increases in the price of oil.

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