The U.S. Energy Information Administration reported good news for fleets and drivers this week, with more substantial price drops in average U.S. diesel costs compared to the last two weeks.
As of August 12, the national diesel pump price average fell 5 cents to $3.704 per gallon, 67 cents lower than this time last year. This dip was echoed across the country at varying levels, with diesel prices declining from less than a cent to almost 6 cents, depending on the region.
Diesel costs dropped the least in the Rocky Mountain region, where prices fell less than a cent to $3.697. West Coast (without California) diesel costs dropped a few cents more at 3 cents per gallon to $3.913. Meanwhile, both the Midwest and West Coast (with California) areas saw their diesel costs fall 4 cents to $3.681 and $4.309, respectively.
See also: Diesel prices still dropping, avg. $3.76/gal, gas up to $3.484/gal
On the upper end, East Coast diesel prices fell 5 cents to $3.778 per gallon, while California diesel fuel prices fell to $4.763. The Gulf Coast saw the largest price cut of 6 cents to $3.371. With all these adjustments in mind, the Gulf Coast is still the cheapest place to buy diesel at $3.37, while California remains the most expensive at $4.76 per gallon.
For comparison, the AAA motor club logged its weekly diesel price average at $3.754, about 5 cents more expensive than the government tracker’s numbers. This still showed an average price drop of 3 cents from last week’s average and a 54-cent drop from last year’s average of $4.295.
Part of the reason for the drop in diesel prices could be attributed to a decline in crude oil prices, according to the EIA’s Short-Term Energy Outlook report, which expects crude oil prices to rise again in the second half of 2024. The Brent crude oil spot price ended July at $81 per barrel, below the average for the month. However, the administration expects prices to rise to $90/barrel by the end of the year. Despite this, monthly retail costs for diesel are expected to remain around the annual average, if not below, heading into 2025.
Gas costs continue to fall below $3.50/gal
Like diesel costs, gas prices continued to drop across the country, save for along the West Coast without California. Nationwide, the current gasoline average is $3.414, down 3 cents from a week ago and 43 cents from this time last year. Otherwise, changes varied from less than a cent to nearly 5 cents.
The West Coast without California saw its gas prices increase by 1 cent to $3.791. Meanwhile, prices dropped the most along the East Coast, down 4 cents to $3.326 per gallon. The Midwest region saw gas prices drop 3 cents to $3.394, the Rocky Mountains and California each fell 2 cents to $3.414 and $4.330, respectively, and Gulf Coast costs dipped only a cent to just under $3. This left the Gulf Coast as the cheapest place for gas, while California remained the most expensive at $4.330 per gallon.
The motor club’s average price for gas is currently $3.443 per gallon, down 3 cents from last week and 3 cents higher than the EIA’s estimate. Last year’s average gas costs were 40 cents higher than current prices.
“With Tropical Storm Debby drifting up the I-95 corridor to visit the Mid-Atlantic and Northeast, the threat to Gulf Coast oil production and refining is over,” said Andrew Gross, AAA spokesperson. “But tensions in the Middle East and some overseas economic uncertainty may mitigate any drop in oil prices.”
