Diesel at the Flying J, here in Phoenix, AZ just dropped to $2. 79/9 from a high, a few weeks ago, of about $3. 12/9. It just started seriously dropping this past week. The cheapest Reg. Gas I've seen was $2. 65/9.
My understanding of the situation is that when Katrina hit destroying much of our refining capacity, everything went up. Other countries started shipping gasoline (not diesel) to us to help out with our situation. Therefore,
we had a greater availability of gasoline.
At the same time, home heating fuel oil (diesel) started being in demand for the winter & our ability to produce diesel was severly limited. We still have our normal need for diesel in vehicles. Since our need for diesel fuel isn't being supplimented by other countries, an apparent shortage occurs, & the price goes up.
It appears our refineries are starting to catch-up, now & the price is starting to go down, a bit.
The thing that was interesting to me was that, diesel fuel at the "J's" in the OK area were more expensive than here in Phoenix. I've never seen them anywhere near as high before, let alone more expensive. We are supposed to be getting mostly California ULSD, here, which, is more expensive.
It will be interesting to see where the price finally bottoms out.
Joe F. Buffalo)