Unleaded gas prices are at their lowest levels in nearly a decade across much of the country, but drivers of diesel-fueled vehicles are not enjoying the same break. Iowa Department of Agriculture Energy Analyst Harold Hommes says demand has outpaced supply and a couple of refineries have been out of service.
“One in Indiana and one further south in Kansas,” Hommes said. “I think product should be moving up the pipeline and we’ll get things a little bit more in line in the near future.” Diesel users switch over to a different grade of fuel in colder weather and that’s reducing inventories.
But Hommes predicts diesel will eventually fall below $3 a gallon. “I’m hoping will see at least that number and we’ll see a 20 to 40 cent narrowing of that spread between gasoline and diesel, but time will tell,” Hommes said.
According to AAA Iowa, the average price for diesel in Iowa is $3.61 a gallon compared to $2.70 for regular unleaded fuel.