The U.S. Energy Information Administration (EIA) reported a notable decline in diesel prices, with the national average dropping by 7.8 cents to $3.553 per gallon as of October 21. This marks the first reduction in more than a month, following a cumulative increase of 10.5 cents over the past four weeks. Despite this recent decline, diesel prices are still providing substantial year-over-year savings for consumers, with the current average nearly a dollar lower compared to the same period in 2023.
Year-over-Year Comparison
This price reduction continues a broader trend of lower diesel costs in 2024. The national average is down by 99.2 cents compared to the same week in 2023. Specific regions, including the Midwest, Rocky Mountain, and West Coast, are experiencing even more significant relief, with prices in those areas dropping by more than $1 per gallon over the past year.
Regional Price Analysis
The price of diesel varies across the U.S., with some regions experiencing more dramatic shifts than others. Below is a breakdown of diesel price changes across key regions:
East Coast (PADD 1): The East Coast saw a slight increase of 0.4 cents, bringing the average price to $3.590 per gallon. However, prices in the Central Atlantic subregion (PADD 1B) fell by 4.5 cents to $3.816 per gallon, while the Lower Atlantic (PADD 1C) experienced a 2.5-cent increase to $3.489 per gallon. Overall, East Coast diesel prices are significantly lower than a year ago, with the New England subregion seeing a decrease of 79.1 cents and the Central Atlantic down by 85.2 cents.
Midwest (PADD 2): The Midwest recorded the largest regional decline, with prices falling by 10.8 cents to an average of $3.543 per gallon. This region also saw the most substantial year-over-year decrease, with diesel prices down by $1.011 compared to 2023.
Gulf Coast (PADD 3): The Gulf Coast experienced one of the steepest declines this week, with prices dropping 13.8 cents to $3.199 per gallon. As the nation’s primary refining hub, the Gulf Coast often sees more dynamic price fluctuations, and year-over-year prices are down by 98.7 cents.
Rocky Mountain (PADD 4): The Rocky Mountain region remained relatively stable, with only a minor increase of 0.1 cents, keeping the average price at $3.636 per gallon. However, this region continues to enjoy the largest year-over-year decline, with prices down by $1.118 compared to last year.
West Coast (PADD 5): Diesel prices on the West Coast decreased by 6.4 cents, bringing the regional average to $4.210 per gallon. While the West Coast maintains the highest diesel prices in the country, it is also seeing some of the most significant annual drops. Prices in the West Coast less California subregion fell by 8.9 cents to $3.785 per gallon, down by $1.203 from the previous year. Meanwhile, California saw a 3.6-cent decrease to $4.698 per gallon, marking a notable $1.318 drop compared to the same time last year.
Market Trends Impacting Diesel Prices
Several market factors are contributing to the recent decline in diesel prices. Crude oil prices have eased, and seasonal demand for diesel has lessened, especially as agricultural activity slows in the Midwest. Stable output from refineries and a relatively calm hurricane season along the Gulf Coast have further supported consistent supply levels, preventing major price hikes.
Gasoline Prices Update
In addition to the diesel price decline, gasoline prices have also dropped. The national average price for gasoline fell by 2.7 cents to $3.144 per gallon, which is 38.9 cents lower than the price at this time in 2023.
This recent decline in both diesel and gasoline prices offers some welcome relief for consumers, especially fleet operators and businesses heavily reliant on transportation. The easing of fuel prices may continue as seasonal demand drops and market conditions remain favorable.
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