Diesel prices dip to lowest since early 2022

The U.S. average diesel price fell less than a cent per gallon this week—a small, yet still downward change after weeks of continual decline.

Scott Keith

June 13, 2023

3 min read

Carriers are dropping out of the industry as the troubled U.S. economy prolongs a freight recession and bottoming spot rates, but stakeholders may receive slight comfort that diesel prices dropped yet again, putting more than $2 below last year’s average in some regions.

The U.S. diesel average dropped three-tenths of a cent the week of June 12, according to the U.S. Energy Information Administration (EIA). The average price per gallon is now $3.794—or $1.924 less than a year ago—and the lowest since early 2022.

Motor club AAA had diesel down nationally by 0.8 cents week-over-week on June 13 to $3.909.

AAA reports Americans’ fuel demands are some of the highest since 2021, but low oil prices mitigate any would-be price hikes from increased demand.

“It appears that our seasonal surge in driving may be kicking off a bit before the official start of summer,” said Andrew Gross, AAA spokesperson. “But the low cost for oil appears to mitigate any increases at the pump, which is good news for drivers.”

Diesel prices dipped in every region of the country except for the East Coast and Gulf Coast, where they increased by 1.3 cents and 2 cents, respectively. West Coast prices saw the most significant declines, on average dropping 4.6 cents. When California prices are excluded, the average cost of a gallon of diesel on the West Coast dropped even more significantly—by 7.2 cents.

Gasoline, however, did not follow diesel’s downward trajectory, as the average price rose 5.4 cents from last week in every region except the Central Atlantic, where it fell 0.7 cents. Prices are still $1.411 cheaper than one year ago.

“We’ve seen some hefty gas price increases in several states in the Great Lakes and in Florida. These areas saw prices jump up in line with behaviors that see such jumps every couple of weeks,” said Patrick De Haan, head of petroleum analysis at GasBuddy. “Exacerbating these routine jumps was government data that showed the third straight week with U.S. gasoline demand over the critical 9-million-barrel-per-day mark, putting upward pressure on average prices in other areas as well. With the Fed meeting this week to potentially alter interest rates again, we could see some turbulence in oil markets, potentially impacting states where gas prices were quiet this week, while the states that saw a big jump last week could see some moderate relief in the week ahead.”