It is time for diesel consumers to celebrate. Diesel fuel prices are dropping, coming down to the average of $3.427 per gallon with a 14c drop in the last week. And in the last month the drop was almost 35c per gallon. Diesel price drops are expected to soon outpace gasoline prices drops.
The biggest drops are seen in the Midwest. The prices for diesel dropped over 20c per gallon over the last week, from 20c per gallon in Minnesota to 27c per gallon in South Dakota with the price coming down to $3.18 there.
Although, if you are not from the Midwest, you probably have not noticed that much of a change in prices. For instance, the price only came down 8c per gallon in New Jersey and just 4c per gallon in Vermont.
So why are diesel prices dropping so fast in the Midwest?
Demand on diesel has been very high all over the world. In the U.S. a lot of diesel is consumed by farmers to harvest crops. Also, there were some major refinery issues this fall. But now the harvest season is over and the refinery issues are sold, the diesel prices are dropping in the Midwest. The prices spiked there in October, so now they are coming back down quickly.