As 2023 draws to a close, diesel and gasoline prices have continued their downward trend, with diesel pump prices in several regions falling below $4, according to the U.S. Energy Information Administration. According to the government agency, on-highway diesel fuel prices currently average $3.987 per gallon nationally—10 cents less than a week ago and 76 cents lower than a year ago.
In addition to the national average, the Lower Atlantic subregion, the Midwest, and the Gulf Coast are all seeing average diesel prices below $4 per gallon at $3.88, $3.90, and $3.64, respectively. The dip in prices marks the seventh consecutive week of diesel price drops since this summer, with the Midwest seeing the most significant cuts of 12 cents, and California, the West Coast, and the Lower Atlantic subregion all seeing an 11-cent decrease in diesel prices.
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The Gulf Coast is still the cheapest region to buy diesel fuel, while California is the most expensive at $5.36 per gallon.
Meanwhile, the AAA motor club’s reported diesel average is significantly more than the EIA’s findings. AAA reported a national diesel average of $4.101, 11.4 cents more than the EIA is tracking but down 9 cents from the previous week.
Gasoline prices dropped a dime since the end of 2022
On the gasoline side, consumer prices continued to drop, with the EIA reporting national average prices of $3.136 per gallon, 9 cents less than a week ago and 10 cents less than a year ago.
Like their diesel counterparts, many regions saw drops of 11 cents per gallon, including the Lower Atlantic subregion and West Coast (including California) again. Alongside them, the Gulf Coast and Rocky Mountain region also experienced 11-cent gasoline price drops, while California itself experienced a 13-cent decrease, despite outpacing its gas prices at this time last year by 10 cents.
AAA prices largely align with the EIA, as the organization reported gas prices at $3.153, 9 cents down from last week’s average of $3.242. In a press release, AAA suggested this was due to weaker oil costs and growing gasoline supply growth.
“Historically, crude oil tends to drop nearly 30 percent from late September into early winter with gasoline prices trailing the play,” said Andrew Gross, AAA spokesperson. “More than half of all U.S. fuel locations have gasoline below $3 per gallon. By the end of the year, the national average may dip that low as well.”
