The Buzz: Diesel cheaper than gasoline

The price of diesel has been less at the pump than regular gasoline for several weeks — a situation not seen in six years — but experts say that will probably change after Labor Day.

On Friday, the average price of a gallon of regular unleaded gasoline was $2.71 in Great Falls, compared with $2.55 for a gallon of diesel, according to AAA. A year ago, the pump price of unleaded gasoline was $3.60 a gallon, compared with $3.90 a gallon for diesel.

Crude oil prices are about $40 a barrel now, compared with close to $100 a barrel a year ago, but high demand for gasoline is keeping pump prices elevated, said Michael Green, manager of public relations for AAA.

“We’ve seen a surge in gas sales because of the lower prices, and there have also been some refinery problems, which is limiting gasoline production,” Green said.

Gasoline sales are expected to drop after Labor Day, which may drop pump prices, he said. At the same time, refineries will shift to increased heating oil production for winter heating demand.

“Heating oil is a very similar product to diesel and typically diesel production declines in the winter,” Green said.

Great Falls-area farmer Charlie Bumgarner bought bulk diesel for off-road use in tractors and combines, as well as for over-the-road use, when prices dropped last spring.

“We have enough to get us through the year, but if they drop again, we might buy enough for two years,” he said. “This year when grain prices aren’t great, it helps to have other expenses lower.”