As 2023 draws to a close, both diesel and gas prices have continued their downward trend, with diesel prices in several regions finally breaking below $4, according to the U.S. Energy Information Administration (EIA). According to the government agency, on-highway diesel fuel prices are currently at $3.987 per gallon, 10 cents lower than a week ago and 76 cents lower than a year ago.
In addition to the national average, the Lower Atlantic sub-region, the Midwest, and the Gulf Coast are all experiencing diesel prices below $4 as well at $3.88, $3.90, and $3.64 per gallon, respectively. The dip in prices marks the seventh consecutive week of diesel price drops from this summer, with the Midwest seeing the largest cuts of 12 cents, and California, the West Coast, and the Lower Atlantic sub region all seeing an 11-cent decrease in diesel prices.
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The Gulf Coast is still the best place to buy diesel fuel, while California is the most expensive at $5.36 per gallon.
Meanwhile, the AAA motor club’s reported diesel average is significantly cheaper than the EIA’s findings. AAA reported a national diesel average of $4.101, 12 cents less than the EIA and 9 cents cheaper than the prior week.
Gasoline prices dropped 10 cents since 2022’s end
On the gasoline side, consumer prices all continued to drop, with the EIA reporting national average prices of $3.136, 9 cents less than a week ago and 10 cents less than a year ago.
Like their diesel counterparts, many regions saw drops of 11 cents, including the Lower Atlantic sub-region and West Coast (including California) again. Alongside them, the Gulf Coast and Rocky Mountain region also experienced 11-cent gasoline price drops, while California itself experiencing a decrease of 13 cents, despite outpacing its gas prices at this time last year by 10 cents.
AAA prices largely align with the EIA, as the organization is currently reporting gas prices at $3.153, 9 cents down from last week’s average of $3.242. In a press release, AAA suggested that this was due to weaker oil costs, and growing gasoline supply growth.
“Historically, crude oil tends to drop nearly 30 percent from late September into early winter with gasoline prices trailing the play,” said Andrew Gross, AAA spokesperson. “More than half of all US fuel locations have gasoline below $3 per gallon. By the end of the year, the national average may dip that low as well.”
