Diesel Fuel Prices Continue to Drop in the US
The latest data from the U.S. Energy Information Administration (EIA) reveals that the average price of diesel fuel in the United States has once again decreased during the week of May 15.
The price dropped by 2.5 cents, reaching $3.897 per gallon. This marks the 14th time in the past 15 weeks that diesel prices have fallen in the trucking industry.
Last week, during the week of May 8, diesel prices experienced a significant drop of 9.6 cents. This decrease brought the U.S. average below $4 for the first time since February 2022. During this time global fuel and crude markets were disrupted by the Russian invasion of Ukraine, which resulted in a sustained rise in diesel and gasoline prices in the United States. Eventually, diesel prices reached a record high of $5.81 per gallon by the week of June 20, 2022, causing significant challenges for the trucking industry.
Diesel Prices Remain High, but Show Significant Yearly Decrease
Although diesel prices remain historically high, they are currently $1.716 per gallon cheaper compared to the same period last year. On May 16, the motor club AAA reported a U.S. average diesel price of $4.012, approaching the $4 threshold and experiencing a decrease of 3.4 cents from the previous week. AAA has observed a daily decline of approximately one cent in diesel prices over the past week.
In terms of gasoline prices, the U.S. Energy Information Administration reports that the average price for the week of May 15 slightly increased to $3.536 per gallon. This price remains 36.1 cents cheaper than diesel. Gasoline is widely used by consumers and is also utilized by smaller commercial fleets and work truckers. Some experts, such as Patrick De Haan, the lead petroleum analyst at GasBuddy, predict significant price decreases for gasoline as well.
| 05/01/23 | 05/08/23 | 05/15/23 | week ago | year ago | |
| U.S. | 4.018 | 3.922 | 3.897 | ↓ -0.025 | ↓ -1.716 |
| East Coast (PADD1) | 4.073 | 3.986 | 3.932 | ↓ -0.054 | ↓ -2.012 |
| New England (PADD1A) | 4.496 | 4.374 | 4.243 | ↓ -0.131 | ↓ -2.188 |
| Central Atlantic (PADD1B) | 4.338 | 4.289 | 4.238 | ↓ -0.051 | ↓ -2.122 |
| Lower Atlantic (PADD1C) | 3.931 | 3.834 | 3.787 | ↓ -0.047 | ↓ -1.818 |
| Midwest (PADD2) | 3.917 | 3.827 | 3.823 | ↓ -0.004 | ↓ -1.523 |
| Gulf Coast (PADD3) | 3.754 | 3.613 | 3.593 | ↓ -0.020 | ↓ -1.702 |
| Rocky Mountain (PADD4) | 4.146 | 4.105 | 4.089 | ↓ -0.016 | ↓ -1.379 |
| West Coast (PADD5) | 4.681 | 4.630 | 4.588 | ↓ -0.042 | ↓ -1.487 |
| West Coast less California | 4.489 | 4.438 | 4.382 | ↓ -0.056 | ↓ -1.237 |
| California | 4.903 | 4.847 | 4.825 | ↓ -0.022 | ↓ -1.652 |
Regional Diesel Price Drops Across the US
The decline in diesel prices was consistent across various U.S. regions, although certain subregions experienced more substantial decreases. In New England, diesel prices dropped by 13.1 cents but remained above $4 at $4.243 per gallon. Along the East Coast, prices fell by 5.4 cents to $3.932 per gallon, primarily due to the Lower Atlantic region where the average price reached $3.787 per gallon, the lowest in the region.
In the Midwest, diesel prices only decreased slightly to $3.823 per gallon. On the Gulf Coast, known for having the most affordable fuel in the nation, diesel prices decreased by 2 cents to $3.593 per gallon. Moving further west, the price of diesel becomes more expensive, reaching $4.089 per gallon in the Rocky Mountains (a decrease of 1.6 cents) and $4.588 per gallon on the West Coast. The West Coast, primarily influenced by California, still has the highest diesel prices in the U.S., although they have decreased by 4.2 cents compared to the previous week.
The decrease in diesel prices can be attributed to a decrease in demand nationwide. Additionally, the price per barrel of crude oil has played a role in lowering diesel prices. Crude oil prices have experienced a further decline this week, with West Texas Intermediate hovering around $70 per barrel and Brent at approximately $75 per barrel.
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