The average price of diesel in the United States dropped below $2 a gallon this month for the first time since 2005, according to an analysis published Wednesday by the Energy Information Administration (EIA).
The EIA surveyed a statistically representative sample of 403 retail diesel stations across America each week to determine the average price of gas through the years.
Source: Energy Information Administration
EIA’s analysis states diesel prices have fallen due to cheap crude oil. The EIA expects diesel prices to remain relatively low throughout 2016 and 2017, averaging $2.22 and $2.58 per gallon, respectively.
Crude oil has been inexpensive due to rising production in the United States and internal disputes within the Organization of Petroleum Exporting Countries. Crude oil prices have fallen more than 70 percent from a peak of $105 a barrel in June 2014, and currently hovers below $30 a barrel.
The average price of gasoline in the United States dropped below $2 a gallon last month. The average American currently pays a mere $1.71 per gallon of gasoline, according to the American Automobile Association.
Diesel is a critical transportation fuel for trucks, and changes of just a few cents per gallon can have huge impacts on the economy.
When the price of gasoline or diesel decreases, the cost of producing goods and services that use either fuel decreases as well. Any good that is transported to market via truck or car also decreases in price. Thus, low prices effectively reduce the price of almost everything.
Send tips to andrew@
All content created by the Daily Caller News Foundation, an independent and nonpartisan newswire service, is available without charge to any legitimate news publisher that can provide a large audience. All republished articles must include our logo, our reporter’s byline and their DCNF affiliation. For any questions about our guidelines or partnering with us, please contact licensing@dailycallernewsfoundation.org.