Diesel Prices Down in August as Oil Markets Improve

Diesel Prices Ease as Summer Demand Cools

Diesel prices are trending lower in mid-August. This offers a bit of relief for the trucking industry. The U.S. average retail diesel price fell to $3.754 per gallon for the week ending August 11, according latest fuel market report from EIA. That is a drop of nearly five cents from the previous week. Compared to this time last year, prices remain mostly flat. Gasoline prices also moved down. They averaged $3.118 per gallon nationwide, about two cents lower than last week and almost 30 cents cheaper than a year ago.

Factors Behind the Drop in Prices

One reason diesel prices are falling is the recent build-up in U.S. crude oil inventories. Stocks rose by just over three million barrels during the week. This suggests demand is easing while supply remains strong. Forecasts also point to lower crude prices ahead. Brent crude is expected to dip below $60 per barrel in late 2025 and possibly hover near $50 in 2026.

U.S. oil production is also on track to hit a record of about 13.4 million barrels per day this year. Production could slow in 2026 as drilling activity adjusts to weaker prices.

Why Lower Diesel Prices Matter for Trucking

For trucking companies and owner-operators, fuel is one of the largest operating costs. Even a small decrease in diesel prices can make a noticeable difference in weekly expenses. This is especially true for fleets using hundreds of gallons each week.

Additionally, falling crude prices and increasing inventories could help keep diesel prices stable. They may even push them lower. This would give trucking businesses more room to manage budgets, set competitive freight rates, and adjust fuel surcharges.

Regional Diesel Prices Show Big Differences

While the national average is a useful benchmark, diesel prices vary widely by region. The Gulf Coast remains the lowest-cost area, averaging about $3.40 per gallon. The Midwest is close to the national average at around $3.75. The East Coast averages about the same, though New England is higher at nearly $4.00 per gallon. However, prices in the Rocky Mountain region are slightly above the U.S. average, at around $3.78 per gallon.

The West Coast continues to see the highest diesel prices, averaging about $4.49 per gallon. California leads the nation with an average of $4.89 per gallon. That is more than $1.10 higher than the national figure. High state fuel taxes, stricter environmental regulations, and unique fuel formulation requirements are key reasons for this gap.

States Where Prices Are Far Above Average

Certain states consistently post diesel prices well above the national average. This is due to factors such as higher fuel taxes, stricter environmental rules, and costly distribution. California tops the list with prices near $4.89 per gallon. Its unique fuel blend requirements and significant excise taxes add directly to pump prices.

In the Northeast, New England states average close to $4.00 per gallon. Here, smaller supply networks, higher transportation costs, and seasonal demand swings all push prices up. These conditions make fuel more expensive to produce, move, and sell. Therefore, there is a persistent gap from the national average.

The Bottom Line on Diesel Prices

Diesel prices are moving in the right direction for truckers as late summer approaches. Strong oil supply, rising inventories, and forecasts for lower crude prices point to continued relief at the pump.

However, the wide variation between states means that averages can be misleading. Truckers should track regional diesel prices closely. This helps ensure costs are covered, surcharge strategies are accurate, and cheaper fueling opportunities are used whenever possible.