Deflation hits diesel dispensers, most common U.S. price for diesel now $3.99 per gallon
For the first time in over two years, average diesel prices in the U.S. today will fall below their year-ago levels according to GasBuddy, the leading fuel savings platform saving North American drivers the most money on fuel. Diesel prices have declined nearly $1.50 per gallon since reaching record-levels last spring and now stand at an average of $4.35 per gallon, the lowest level since the days immediately after the Russian invasion of Ukraine.
“Diesel’s decline has been astounding – we’ve seen improvements in fundamentals over the last few months with diesel prices down nearly $1 per gallon in the last 100 days, thanks in part due to the Fed raising interest rates, throttling back the economy, as well as Mother Nature reducing consumption through a mild winter and curbing consumption of diesel’s cousin, heating oil,” said Patrick De Haan, head of petroleum analysis at GasBuddy. “Coming out of winter, we’ll continue to see diesel prices decline. Barring an unexpected disruption or escalation in global events, diesel prices this summer could be $2 per gallon lower than last summer, which is certainly good news for the economy and transportation sectors stung by the previous high costs of diesel fuel.”
Diesel by the numbers:
- 7 states where diesel prices average below $4 per gallon: OK, TX, KS, WI, MO, IA, AR
- Most common diesel prices in the U.S., in order: $3.99, $4.09, $3.89, $4.29, $4.19
- $3.62/gal: the average of the lowest priced 10% of stations in the S.
- $5.82/gal: the peak in the national average price of diesel hit in 2022
- 78 cents: the amount of decline to average diesel prices in the last 90 days
According to GasBuddy, retail diesel prices are likely to continue falling as demand continues to ease and winter heating oil consumption declines. As long as central banks continue to raise interest rates to cool off previously overheated economies, there will be continued downward pressure through most of the spring and summer, even as gasoline prices are likely to rise during that timeframe.
GasBuddy covers this topic in episode 3 of its podcast “Over a Barrel” here: bit.ly/overabarrelshow
GasBuddy is the leading fuel savings platform providing North American drivers with the most ways to save money on gas. GasBuddy has delivered more than $3.5 billion in cumulative savings to its users through providing real-time gas price information at 150,000+ stations, offering cash back rewards on purchases with brand partners, and through the Pay with GasBuddy™ payments card that offers cents-off per gallon at virtually all gas stations across the US. As one of the most highly rated apps in the history of the App Store, GasBuddy has been downloaded over 100 million times. Acquired by PDI Technologies in 2021, GasBuddy’s publishing and software businesses enable the world’s leading fuel, convenience, QSR and CPG companies to shorten the distance between the fueling public and their brands. For more information, visit www.gasbuddy.com.