EIA reports diesel prices drop to a five-year low

The average price per gallon of diesel gasoline dropped 3.5 cent to $2.831 per gallon, according to data issued this week by the Department of Energy’s Energy Information Administration (EIA).

This week’s price represents a five-year low, with diesel prices at their lowest level since the week of February 15, 2010, when it was at $2.756 per gallon.

The 3.5 cent drop this week follows a 6.7 cent drop last week, which was preceded by a 12-cent drop on January 19, which marked the first time diesel prices fell below $3 per gallon going back to the week of September 27, 2010.

The average price per gallon of diesel has seen one increase over the last seven months, going back to the week of June 30, 2014, when it rose from $3.919 per gallon to $3.912. And since June 30, 2014, the only week seeing an increase was from $3.623 the week of November 3 to $3.677 the week of November 10.

Compared to the same week a year ago, the EIA said that prices are down $1.12 cents. In its recently-issued Short Term Energy Outlook, the EIA pegged the average price for diesel prices in 2014 at $3.82 and $3.07 in 2015, with crude oil at $93.82 per barrel in 2014 and $62.75 in 2015.

The average price per oil in the New York Mercantile Exchange was trading at $51.04 per barrel, which is up from last week’s nearly near five and a half year low of $44.15 per barrel. A MarketWatch report noted that prices headed up based on speculation that a sharp decline in U.S. drilling activity will result in supply cuts.