LONDON, ON and WASHINGTON, D.C. – Average retail prices for diesel in both Canada and the U.S. have moved down for another consecutive week as the price for benchmark crude oil is the lowest in seven years.
The cost for trucking’s main fuel in Canada declined $0.013 from last week for an average of $1.029 per liter, its lowest price in two months and its fourth straight weekly drop, according to the petroleum information services provider The Kent Group.
Prices fell in all four of Canada’s different regions and range this week from a low of $1.006 in the Western Provinces to a high of $1.116 in Quebec.
When compared to this time last year the national average price is $0.231 less per liter.
In the U.S., diesel also fell for the fourth straight week, down US$0.042 from last week, for an average of $2.379 per gallon, its lowest level since July 2009 and is US$1.156 less than a year ago, according to the U.S. Energy Department’s Energy Information Administration.
Meantime, average prices for regular grade gasoline also fell here at home and in the U.S. Canada recorded a $0.04 drop over the past week for an average of $1.007 per liter. In the U.S. the fell just US$0.006 to US$2.053 per gallon with some predicting it will fall below US$2 before the year is out.
Compared to this week last year the average cost of regular grade gasoline in Canada is down $0.065 per liter while it is down south of the border by US$0.626 per gallon.
This followed the price of crude in the U.S. on Tuesday settling at US$37.51 per barrel in New York City, down a little more than US$24 from a year earlier, as the OPEC oil cartel announced last Friday members will keep pumping more oil than their output target surpassed 18 months ago. The current price is also the lowest since the global financial crisis.
The decline in oil prices has also pushed down the value of the Canadian dollar with it settling at Tuesday at US$0.74, its lowest level since June 2004.
In the meantime, a U.S. Energy Department forecast issued Tuesday said it expects the average cost of diesel in the U.S. next year to average US$2.67 per gallon. That compares to an expectation of an average of US$2.71 for 2015, down US$1.12 from the 2014 average.
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