U.S. Diesel Prices Reverse Course and Plummet Once More: Latest Fuel Data

Latest Fuel Data: Trucking’s Primary Fuel Drops 3.9 Cents to $4.077 per Gallon for Week of April 24, Yet Still a Far Cry From Pre-Pandemic Levels.

The U.S. diesel average experienced a significant drop of 3.9 cents per gallon to $4.077 during the week of April 24, according to the latest data from the U.S. Energy Information Administration (EIA). This decrease follows a slight increase of 1.8 cents per gallon to $4.116 in the previous week, marking the first rise in almost three months. The national average for diesel has dropped more than $1 per gallon compared to the same period last year. Despite the recent decline, diesel above $4 per gallon is still high for the trucking industry. According to EIA historical data, prior to the COVID-19 pandemic, the average price for diesel was below $3 per gallon on Jan. 28, 2019.

Gasoline Prices in the U.S. Stabilize as Diesel Continues to Drop, According to EIA Data

On the other hand, the price of gasoline in the U.S. remained almost unchanged at $3.656 per gallon during the week of April 24, as per EIA data. However, there was a significant increase of 6.7 cents per gallon in the previous week. Gasoline prices have a direct impact on the American economy and can affect consumer spending, as well as transportation and manufacturing costs.

According to the EIA, diesel fuel prices decreased in every region of the U.S. except for the Rocky Mountain region, where the fuel increased by 2 cents to $4.124 per gallon. On the East Coast, trucking’s main fuel fell 4.7 cents to $4.151. In the Midwest, the fuel fell 4.3 cents to $3.984 per gallon, and it also dropped 5.3 cents to $3.823 along the Gulf Coast. On the West Coast diesel fuel prices remained unchanged at $4.692 a gallon for the second week in a row.

The price of crude oil, which diesel and gasoline, as well as other fuels, are refined from, can be a reliable barometer of fuel prices. Currently, West Texas Intermediate (WTI) is hovering below $80, while Brent crude is flying just above $80 with some variations. Futures for WTI are holding at around $77.87 per barrel, down $4.65 from the previous week and $25.92 per barrel from a year earlier. The global price of crude oil is influenced by various factors, including OPEC production levels, geopolitical tensions, and global demand for oil.

US Diesel Supplies Tighten, but Fears of Shortage Subside: Reuters Report

Reuters reported on April 23 that U.S. diesel supplies are tightening, but fears of a shortage have subsided. This is due to a widespread downturn in the consumption of fuel caused by slowing manufacturing and freight activity since the third quarter of last year, according to the same report. The volume of distillate supplied to the domestic market in January 2023, a proxy for consumption, was the lowest for the time of year since 2017.

The recent drop in diesel prices in the U.S. is good news for the trucking industry, which heavily relies on diesel fuel. However, prices still remain relatively high compared to pre-pandemic levels. Gasoline prices have remained stable, but any significant increase in prices could have an impact on the economy as a whole. Factors influencing fuel prices include crude oil prices, global demand, and geopolitical tensions. Despite diesel supplies tightening, fears of a shortage have subsided.

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