The national average price for a gallon of diesel dropped 11.5 cents to $2.732 last week, according to the Energy Information Administration. The drop in prices reflects refineries in the Gulf Coast slowly restoring operations after Hurricane Katrina. However, the supply system is still “a long way from being back to normal.”
All regions posted some relief at the pumps. The Midwest saw the lion’s share of it, as prices plummeted 13.4 cents to $2.648. The Midwest also averaged the cheapest diesel. Prices held the steadiest in the Rocky Mountains after shedding only 5.5 cents to $2.902. California is the only region that averages above $3 diesel at $3.06, despite a 9.8-cent rollback.