As the U.S. gets closer to summer’s end, both diesel and gas prices have continued to fall, helped along by diesel refinery premiums finally nearing pre-pandemic levels.
“We're all the way back to what had been a more typical number for diesel's refining premium at just over $20,” said Matt Muenster, chief economist at Breakthrough. “This is getting back toward normal, pre-pandemic figures.”
This return has helped contribute to the U.S. Energy Information Administration‘s (EIA) streak of decreased diesel prices, which reached its seventh week as of August 26. The current national average for U.S. on-highway diesel fuel prices is $3.651 per gallon, down 3 cents from last week and 82 cents from this time last year. Every other region cut their diesel prices this week as well, with costs dropping 1-5 cents.
Part of this is also due to the recent drop in crude oil prices, Muenster explained.
“Crude oil prices are down about $5 per barrel when we compare the July to August average to date thus far,” the chief economist said. “So that's offered some downward price pressure for gasoline and diesel prices.”
Diesel costs fell the least along the West Coast without California, where prices dropped only 1 cent to $3.893 per gallon. The Central Atlatnic sub-region also only fell 1 cent to $3.920, while the West Coast overall did slightly better at a price cut of 2 cents to $4.272 per gallon. Meanwhile, the New England sub-region fared much better and saw its diesel prices drop 5 cents to $3.969 per gallon. Close behind New England, the Midwest’s diesel prices dropped almost 5 cents to $3.627 per gallon, and the Rocky Mountain area’s fell 4 cents to $3.608 per gallon. But when all is said and done, the Gulf Coast is still the cheapest place to buy diesel at $3.317, and California remains the most expensive at $4.707.
The AAA motor club's price logs were only 4 cents more expensive than the EIA’s at $3.699. The motor club also found that diesel costs are continuing to fall, this week at a rate of 4 cents from last week’s $3.733 per gallon, and down 66 cents from this time last year.
Gasoline costs reach national average of $3.31/gal
Gasoline costs have been benefitting from the same factors as diesel. This week, gas prices dropped across the nation, save for California. Overall, the U.S. regular gasoline price average was $3.313, down 6 cents from a week ago and 50 cents from last year. Otherwise, gas price shifts ranged from less than a cent to 11 cents.
For California, the price increase was negligible, as gas costs went up by less than a cent to $4.325 per gallon. The West Cost overall also didn’t see as much payoff from gas price drops, as the area’s costs overall fell less than a cent to $4.050. Even without California, the region’s gas prices only fell 2 cents to $3.750 per gallon. On the upper end, both the Midwest’s and Rocky Mountains’ gas prices dropped 11 cents to $3.208 and $3.357, respectively. Just behind them, the Gulf Coast’s gas prices fell 10 cents to $2.894, leaving it as the cheapest region to buy gas, while California is still the most expensive.
For added context, AAA’s national average for gas is currently $3.351 per gallon, down 6 cents from last week and 46 cents lower than this time last year at $3.820.
“The clouds of war overseas are less dark at the moment and the Atlantic is quiet now too, which is taking pressure off of oil prices,” said Andrew Gross, AAA spokesperson. “More retail locations east of the Rockies are selling gas below $3 a gallon. Will this trend continue through the end of the year? Stay tuned.”
This article was originally published on FleetOwner.com.
