As the U.S. approaches summer’s end, diesel and gas prices continue to fall, helped along by diesel refinery premiums finally nearing pre-pandemic levels.
“We're all the way back to what had been a more typical number for diesel's refining premium at just over $20,” said Matt Muenster, chief economist at Breakthrough. “This is getting back toward normal, pre-pandemic figures.”
This return has contributed to the U.S. Energy Information Administration‘s streak of reporting decreased diesel prices, which reached its seventh week August 26. This week's national average for U.S. on-highway diesel fuel prices is $3.651 per gallon, down 3 cents from last week and 82 cents from this time last year. Every other region saw diesel prices drop by 1-5 cents this week.
Part of this is also due to the recent drop in crude oil prices, Muenster explained.
“Crude oil prices are down about $5 per barrel when we compare the July to August average to date thus far,” the chief economist said. “So that's offered some downward price pressure for gasoline and diesel prices.”
Diesel costs fell the least along the West Coast without California, where prices dropped only 1 cent to $3.893 per gallon. The Central Atlantic sub-region also only fell 1 cent to $3.920, while the West Coast overall did slightly better at a price cut of 2 cents to $4.272 per gallon.
Meanwhile, the New England sub-region fared much better and saw its diesel prices drop 5 cents to $3.969 per gallon. Close behind New England, the Midwest’s diesel prices dropped almost 5 cents to $3.627 per gallon, and the Rocky Mountain area fell 4 cents to $3.608 per gallon. But the Gulf Coast is still home to the most affordable diesel ($3.317/gal.), and California remains the most expensive ($4.707/gal.).
See also: Fuel prices continue slow decline as summer wanes
The AAA motor club‘s price logs were only 4 cents more expensive than the EIA’s at $3.699. The motor club also found that diesel costs continue to fall this week at a rate of 4 cents from last week’s $3.733 per gallon and down 66 cents from last year.
Gasoline national average down to $3.31/gal.
Gasoline costs have been benefitting from the same factors as diesel. This week, gas prices dropped across the nation, save for California. Overall, the average price of regular gasoline in the U.S. was $3.313, down 6 cents from a week ago and 50 cents from last year. Otherwise, gas price shifts ranged from less than a cent to 11 cents.
For California, the price increase was negligible, as gas costs went up by less than a cent to $4.325 per gallon. The West Coast didn’t see as much payoff from gas price drops, as the area’s costs fell less than a cent to $4.050 overall. Even without California prices considered, the West Coast region’s gas prices only fell 2 cents to $3.750 per gallon.
On the upper end, the Midwest’s and Rocky Mountains’ gas prices fell 11 cents to $3.208 and $3.357, respectively. Just behind them, the Gulf Coast’s gas prices dropped a dime to $2.894, leaving it as the cheapest region to buy gas, while California is still the most expensive.
For added context, AAA’s national average for gas is currently $3.351 per gallon, down 6 cents from last week and 46 cents lower than this time last year, when it was $3.820.
“The clouds of war overseas are less dark at the moment, and the Atlantic is quiet now too, which is taking pressure off of oil prices,” said Andrew Gross, AAA spokesperson. “More retail locations east of the Rockies are selling gas below $ a gallon. Will this trend continue through the end of the year? Stay tuned.”
