The national average diesel price in the U.S. fell by 3.7 cents, settling at $3.651 per gallon, based on data from the Energy Information Administration released on August 26. This is the seventh straight week of declining prices, amounting to a total drop of 21.4 cents since mid-July.

Key Points:

  • Year-over-Year: The national average diesel price is 82.4 cents lower than it was during the same period last year. The Rocky Mountain region and the West Coast, excluding California, have experienced the most significant yearly decreases, with prices down by $1.05 and $1.08 per gallon, respectively.
  • Gasoline Update: The national average gasoline price dropped by 6.9 cents to $3.313 per gallon, which is 50 cents cheaper than it was at this time in 2023.

Regional Overview

Diesel prices decreased in all 10 regions covered by the EIA’s weekly survey, with drops ranging from 5 cents in New England to 1.3 cents in the West Coast excluding California subregion.

  • East Coast (PADD 1): The average diesel price in this region dropped by 3.2 cents, settling at $3.725 per gallon. Within the East Coast, New England (PADD 1A) saw the largest decline of 5 cents, bringing the price to $3.969 per gallon. The Central Atlantic (PADD 1B) experienced a 1.5-cent drop, while the Lower Atlantic (PADD 1C) reported a decrease of 3.6 cents.
  • Midwest (PADD 2): This region recorded the largest decrease, with prices falling by 4.7 cents to $3.627 per gallon.
  • Gulf Coast (PADD 3): The Gulf Coast, known for consistently having the lowest diesel prices in the country, saw a decline of 3.8 cents, bringing the average to $3.317 per gallon.
  • Rocky Mountain (PADD 4): Prices in the Rocky Mountain region fell by 4.2 cents, reaching an average of $3.608 per gallon. Despite this drop, the region continues to show relatively stable pricing compared to other areas.
  • West Coast (PADD 5): The West Coast experienced a smaller decline, with a decrease of 2.2 cents to $4.272 per gallon. Within this region, California saw prices drop by 3.2 cents, bringing the average to $4.707 per gallon, while the West Coast excluding California subregion saw a decline of 1.2 cents, with prices averaging $3.893 per gallon.

Implications

The ongoing decline in diesel prices is due to a combination of factors, such as reduced demand, steady crude oil prices, and seasonal changes in fuel consumption. This trend has offered some financial relief to the trucking and logistics sectors, which have been dealing with higher fuel costs over the past couple of years.