Diesel dips below $3.50; gas flirts with sub-$3 for first time since 2021
As 2024 ticks down, the U.S. Energy Information Administration found that diesel prices dropped nationwide, with some regions down as much as a dime on December 9. While the national on-highway diesel fuel price average didn’t drop quite that much, it did fall 8 cents from last week to $3.458 per gallon, 52 cents less than this time last year.
California’s diesel prices didn't experience the decreases seen across most of the country, as average Golden State fuel prices dropped only 2 cents to $4.623. The West Coast did slightly better, overall, decreasing 4 cents on average to $4.119 per gallon, while the West Coast without California fell 5 cents to $3.682.
On the other end, the East Coast’s average diesel prices slid 6 cents to $3.535 per gallon, and the Midwest and Gulf Coast’s average both dropped 9 cents to $3.425 and $3.130, respectively. The Rocky Mountains continue to see the most significant price drops compared to the other U.S. regions, falling 10 cents to $3.329 per gallon this week.
However, average Rocky Mountain diesel prices are still 19 cents more expensive than the Gulf Coast’s, leaving the latter as the cheapest place to buy diesel fuel, while California remains the most expensive.
See also: Fuel prices continue to plateau, diesel averages $3.54/gal
While diesel prices have generally been trending down throughout 2024, the EIA did use a more expensive retail price between September and October for its most recent calculation of what drivers pay for in a gallon of fuel. Based on a retail price of $3.59/gal, the EIA found that refining costs accounted for the smallest part of fuel prices at 15% or 53 cents. However, refining costs rose 2% in September, while distribution and marketing (21%) lost that amount and cost 75 cents to the gallon in October. Taxes and the cost of crude oil remained consistent in their allocation of a gallon of diesel at 17% and 48%, which equated to 61 cents and $1.72.
In comparison to the EIA’s findings, the AAA motor club‘s diesel prices did not shift as much as the EIA’s. The motor club found that its current diesel price average was $3.512 per gallon, 6 cents more expensive than the EIA’s, but 2 cents cheaper than last week’s prices of $3.536. Additionally, the AAA’s diesel costs are currently 59 cents less expensive than this time last year.
U.S. gasoline average teases dipping below $3/gal
While diesel costs fell across the country, gas prices have not been so uniform since last week. The national average, currently coming in at $3.008 according to the EIA, fell 2 cents from last week and 12 cents from this time last year. Otherwise, gas prices shifted at a rate of less than a cent up to 9 cents, depending on the region.
More specifically, prices rose 1 cent on the East Coast to $2.999 per gallon and 2 cents on the Gulf Coast to $2.603. While the Rocky Mountain region’s diesel prices fell significantly this week, the area’s gas prices only dropped less than a cent to $2.786. The West Coast’s gas prices dipped 3 cents across the board, with the West Coast overall reaching $3.827 per gallon, the West Coast without California reaching $3.484, and California seeing gas prices of $4.141. The Midwest, meanwhile, saw its gas prices drop the same amount as its diesel costs, falling 9 cents to $2.808 per gallon.
But the Gulf Coast is still the cheapest place for gas at $2.603 per gallon, while California is the most expensive at $4.141.
The AAA also noted the general drop in fuel prices, with its current gas average at $3.018 per gallon, 3 cents less than last week’s $3.047. This is also 15 cents less expensive than last year’s gas prices of $3.167.
“The national average is tantalizingly close to falling below $3 a gallon, and it could happen in a few days,” said Andrew Gross, AAA spokesperson. “But 32 states already have an average below or well below $3. Hockley County, Texas, appears to have the lowest county average, at $2.30.”
According to AAA, the last time the national gas average was below $3 was May 11, 2021.
