Diesel Prices Continue Falling, Lowest in Many Years

LONDON, ON and WASHINGTON, D.C. – As the price of oil keeps falling, diesel costs in both Canada and the U.S. moved down for the fifth straight week, hitting their lowest levels in several years.

According to the petroleum information service provider The Kent Group, trucking’s main fuel in Canada declined $0.016 over the past week for a national average of $1.012 per liter, its lowest price since September 2010.

This more recent string of weekly declines total $0.059 while the price of diesel is down $0.208 from this week last year.

Not surprisingly, the average cost in Canada’s four different regions all declined from last week and range from a low of $0.984 in the Western Provinces to a high of $1.10 in Quebec.

In the U.S., the story was similar, with diesel falling US$0.041 over the past week for a nationwide average of US$2.338 per gallon, its lowest level since June 2009, according to the Energy Department’s Energy Information Administration.

Compared to this week in 2014 the average price of diesel in the U.S. has fallen US$1.081 per gallon.

In contrast, the story with regular grade gasoline was mixed with it edging higher in Canada but falling to the south.

Canada’s national average increased $0.006 from last week to $1.013 per liter, as the price from a year earlier posted its first hike in many months, though only adding $0.002.

Meantime, in the U.S. the average cost of regular grade gasoline continued its drop, shedding US$0.016 since last week and hitting US$2.037 per gallon, which is US$0.517 less than this week a year earlier.

This happened as the price of oil in the U.S. settled at US$36.31 per barrel in New York on Monday after being at its lowest level since February 2009 earlier in the day. This compares to just under US$61 in early May and around $106 per barrel nearly 17 months ago.

U.S. crude oil prices, as well as those outside the country, have declined steeply due to the U.S. oil shale boom, increasing supplies by OPEC and declining use in China, the world’s second biggest consumer of petroleum.

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