Diesel prices dip as drivers deck the halls

Diesel prices are ringing in the holidays with ever-lower rates for drivers. For the week of Dec. 18, the U.S. Energy Information Administration reported that diesel costs have continued to drop nationwide for the eighth week in a row, with current nationwide prices at $3.894 per gallon. While last week marked the first time diesel prices reached below $4 per gallon, this week, the East Coast, Lower Atlantic, Midwest, Gulf Coast, and Rocky Mountain regions all offered prices below this threshold.

The decline in the nationwide average represents a 9-cent difference from the week before, and 70 cents cheaper than a year ago, though some regions experienced even larger dips in diesel prices. According to the EIA, the West Coast, both with and without California, saw the largest price drop of 14 and 15 cents respectively, bringing the West Coast with California to an average diesel fuel price of $4.655 and $4.153 without. Meanwhile, California itself saw a diesel price drop of 13 cents down to $5.231.

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However, even with these significant price cuts, California is still the priciest state to purchase on-highway diesel fuel, while the Gulf Coast is the cheapest at $3.569 per gallon.

In comparison, the AAA motor club’s diesel report featured higher prices than those in the EIA. The motor club recorded a nationwide average diesel fuel price of $4.008, a rate which is 11 cents more expensive than the EIA’s reports. However, this price is still lower than the AAA’s reports from a week ago ($4.101) and a year ago ($4.778).

Gasoline prices close out year under 2022 levels

As regular gasoline prices have largely experienced less price volatility throughout 2023, the EIA is currently reporting that the national average for gas prices are at $3.053, a decline of 8 cents from a week ago and 6 cents from a year ago. While gas prices dropped in every region, the Lower Atlantic subregion and West Coast area are both slightly more expensive than at this time last year, by less than a cent and by 7 cents respectively.

Otherwise, the Midwest saw the largest drop in gas prices (10 cents), which wasn’t quite enough to make the area the cheapest place to buy gas. Instead, the Gulf Coast is still the most cost-effective, according to the EIA, at $2.808 per gallon, while California is still the most expensive at $4.359 per gallon.

Meanwhile, the AAA reported very similar gas numbers to the EIA with a current nationwide average of $3.066 per gallon, a 9-cent drop from the week before and an 8-cent drop from 2022. This trend is likely to continue throughout the end of the year, as the EIA’s most recent Short-Term Energy Outlook reported that monthly retail diesel sales are currently below the average and will remain so until rising back towards the forecasted average in 2024. Additionally, the U.S.’ crude oil supplies are currently at 435 million barrels, a 4.7% increase from the year’s forecast of 416 barrels, which could be contributing to lower gasoline prices.

At the very least, drivers can look forward to continually lower prices at the pump this holiday season.

“With pump prices falling slowly each day, it is likely that the national average will slide below $3 per gallon by the end of the year,” reported Andrew Gross, AAA spokesperson.