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The U.S. retail diesel average price fell 3.7 cents a gallon to $2.833 last week, the largest one-week decline since July, the Department of Energy reported.

Michigan lawmakers have proposed a 6-cent increase in the state’s diesel tax to help pay for road improvements, the Associated Press reported.

California environmental regulators are considering several options to delay some requirements of the state’s diesel emissions regulation to provide “short-term relief” for truckers feeling the effects of the recession.

Trucking industry officials have filed comments opposing the California Air Resources Board’s plan to initiate a statewide cap-and-trade program to reduce greenhouse gas emissions.

The national diesel average declined 0.9 cent to $2.87 last week as pump prices moderated after a sharp spike the prior three weeks, the Department of Energy reported.

Detroit Diesel Corp. said that its diesel engines have been certified by the Environmental Protection Agency for meeting the agency's 2010 emissions regulations.

The average price of a gallon of retail diesel fuel in the United States rose 8.2 cents a gallon last week to $2.879, the highest level in 14 months, according to the Department of Energy.