Diesel prices drop by a dime since last week

The national average cost of diesel has dropped since last week, according to AAA.

AAA reports that on July 12, the national average cost for a gallon of diesel has dropped from $5.726 a week ago to $5.625 today.

The cost of a gallon of diesel on July 12 is the highest in California at $6.787 per gallon. The state where diesel is cheapest is Texas, where the average cost for diesel is $5.048 per gallon.

The highest national average cost for a gallon of diesel ever recorded by AAA was $5.816 on June 19, 2022.

According to AAA, gasoline costs are also coming down, with a current national average cost of $4.67 per gallon.

“The national average has declined for 27 days straight, or four weeks, the longest decline in average gas prices since the pandemic started in 2020. Average gas prices are down nearly 40 cents, with Americans shelling out $140 million less on gasoline every day than they did a month ago,” said Patrick De Haan, head of petroleum analysis at GasBuddy. “We may see the trend last a fifth week, as long as oil prices remain cooperative and don’t surge beyond $105 per barrel, and as long as refinery production of gasoline remains strong. But we’re not completely out of the woods yet – we could also see a sharp reversal in the decline. There remains the risk of a spike in prices that could send us to new record levels in August, should any disruptions occur. It could be a wild ride, but for now, the plummet at the pump shall continue.”

Fuel analysts at GasBuddy pointed to a surge in oil inventories last week as part of the reason for the decreasing costs at the pump. Oil is currently around $100 per barrel, which is helping to somewhat drive down high fuel costs.