The national average price of diesel dropped by 2.6 cents to $3.625 per gallon as of September 2, according to data from the U.S. Energy Information Administration. This is the eighth week in a row that prices have fallen, with a total decrease of 24 cents during that time.
Year Over Year Over the past year, diesel prices have seen a significant decline across all regions, with the national average down by 86.7 cents. The Rocky Mountain and West Coast regions have experienced the largest year-over-year decreases, with prices dropping by $1.137 and $1.097 per gallon, respectively.
Gasoline Update The average price for a gallon of regular gasoline nationwide decreased by 2.4 cents to $3.289, which is 51.8 cents less than it was at this time in 2023.
Regional Analysis
Diesel prices fell in four out of the five PADD regions surveyed by the EIA this week, with the West Coast being the exception.
East Coast (PADD 1): The average diesel price in the East Coast region dropped by 3.9 cents, bringing it to $3.686 per gallon. Within this region, New England (PADD 1A) saw a decrease of 5 cents, lowering its average price to $3.919 per gallon. The Central Atlantic (PADD 1B) experienced a smaller decline of 1.2 cents, while the Lower Atlantic (PADD 1C) saw a reduction of 4.8 cents per gallon.
Midwest (PADD 2): Diesel prices in the Midwest decreased by 1.4 cents to $3.613 per gallon, though the rate of decline has slowed compared to previous weeks. Despite this, the region has consistently experienced significant price drops over the last two months.
Gulf Coast (PADD 3): The Gulf Coast, which continues to have the lowest diesel prices, recorded a decrease of 5.2 cents per gallon, bringing the average price to $3.265.
Rocky Mountain (PADD 4): In the Rocky Mountain region, diesel prices fell by 1.8 cents, bringing the average price down to $3.59 per gallon.
West Coast (PADD 5): The West Coast was the only region where diesel prices increased, rising by 2.1 cents per gallon to $4.293. This increase was largely driven by California, where prices went up by 4.2 cents to $4.749 per gallon, even though there was a year-over-year decrease of $1.052.
What It Means
Looking ahead, diesel prices could continue to decrease due to ongoing global oil market trends and domestic fuel demand. However, regional differences are expected, particularly in areas like the West Coast, where factors like supply chain dynamics and environmental regulations can cause price fluctuations.
