Fuel market defies seasonal trends as diesel drops from war-related highs

For a third week in a row, diesel and gasoline prices fell across the U.S. Fuel prices typically see a seasonal spike in the weeks after Memorial Day, but fuel prices have been anything but normal the past three months since the U.S. war with Iran began. 

Since Iran closed most maritime traffic in the Strait of Hormuz, a vital shipping channel for the oil industry, U.S. fuel prices have remained abnormally high through the spring. But now, as summer driving season begins, fuel prices have slowly receded—while remaining nearly $2 per gallon higher than a year ago. 

How long this streak will continue is unknown, as peace talks with Iran inch along—sometimes positively, often negatively. 

The national average on-highway diesel price dropped 14 cents to $5.210, according to data released by the U.S. Energy Information Administration (EIA) on June 8. Gas prices dropped 16 cents to $4.146.

What are the current diesel prices across the U.S?

Here are this week’s diesel price highlights from each region of the U.S.:

• Midwest: The biggest drop in diesel prices this week occurred in the Midwest for 21 cents to $5.182.
• Rocky Mountain: Diesel prices dropped 13 cents to $5.200.
• Gulf Coast: Diesel prices dropped 11 cents to $4.786.
• West Coast: Diesel prices dropped 11 cents to $6.289. Without including California, diesel prices dropped 11 cents to $5.725.
• East Coast: Diesel prices dropped 9 cents to $5.149. 

According to AAA Motor Club (AAA), the current national diesel price average is $5.317. This is 11 cents higher than EIA’s current estimate and $1.823 higher than this time last year.

What are the current gasoline prices across the U.S.?

The current national average on-highway gasoline price is $4.146, according to EIA, 16 cents lower than last week’s average. 

Here are this week’s gasoline price highlights from each region of the U.S.:

• Midwest: The biggest drop in gasoline prices this week occurred in the Midwest, by 19 cents to $3.945.
• Gulf Coast: Gas prices dropped 16 cents to $3.643.
• East Coast: Gas prices dropped 15 cents to $3.990.
• West Coast: Gas prices dropped 14 cents to $5.358. Without including California, gas prices dropped 13 cents to $4.955.
• Rocky Mountain: Gas prices dropped 14 cents to $4.194.

According to AAA, the current national gasoline price average is $4.161. This is 2 cents higher than EIA’s current estimate and $1.037 higher than this time last year. 

In a recent press release, AAA said, “Pump prices are cooling off as the price of crude oil remains below $100 per barrel. Drivers will take all the relief they can get as they embark on summer road trips. But uncertainty lingers over when the Strait of Hormuz will fully reopen and resume traffic. That unknown means oil prices will likely not decrease dramatically as summertime gasoline demand starts going up.”