Diesel Prices Down In The Latest Fuel Market EIA Report

Diesel Prices Dip Slightly as Gasoline Holds Steady

Diesel prices dropped during the week ending July 29, 2025, as the fuel market showed signs of softening. While gasoline prices held mostly steady, the U.S. Energy Information Administration (EIA) reported a national average diesel price of $3.805 per gallon—a decline of 0.7 cents from the previous week.

Diesel Prices Fall as Inventories Grow

According to the latest data, diesel prices dropped while distillate inventories increased. U.S. distillate fuel oil stocks rose by 3.6 million barrels. Total inventories reached 121.5 million barrels. However, that is still 16% below the five-year average for this time of year.

Refineries continued running at high capacity. They produced 5.2 million barrels of distillate fuel each day. Distillate imports also went up. The U.S. brought in 229,000 barrels per day, helping build supply.

Regional Diesel Prices Show Mixed Trends

Diesel prices dropped in most regions. The Midwest had the largest drop. Prices there fell by 2.4 cents to $3.738 per gallon. The West Coast (excluding California) also saw a decrease. Prices dropped by 1.2 cents to $3.974 per gallon.

Still, the diesel price in California went up. The average price there rose by 0.7 cents to $4.712 per gallon. This keeps California the most expensive state for diesel. The Rocky Mountain region followed with $3.937 per gallon, even after a 1.8-cent drop.

Diesel Price Compared to Gasoline Prices

While diesel prices moved down, gasoline prices held mostly steady. The national average for regular gasoline increased by only 0.2 cents. That brought the price to $3.123 per gallon. Even with the small rise, this is still 36 cents lower than one year ago.

Gasoline inventories, however, dropped. Stocks fell by 2.7 million barrels, now just 1% below the five-year average.

Crude Oil and Refinery Activity Support Diesel Supply

Crude oil prices also moved lower. West Texas Intermediate (WTI), the U.S. benchmark, dropped by $2.15. It now stands at $66.38 per barrel. Crude oil inventories rose by 7.7 million barrels to reach 426.7 million barrels. Even so, that number is still 6% below the five-year average.

Refineries ran strong. They operated at 95.4% of capacity. Daily crude oil inputs averaged 16.9 million barrels. Refiners made 10.0 million barrels of gasoline and 5.2 million barrels of distillate fuel each day.

Diesel Prices and Fuel Demand

Fuel demand showed mixed signs. Diesel prices fell even though demand stayed steady. Over the past four weeks, the U.S. supplied 3.5 million barrels of distillate fuel each day. That is a 4.1% decrease compared to the same time last year.

Gasoline demand also fell. The U.S. supplied 8.9 million barrels of gasoline per day, which is down 3.0% from one year ago. On the other hand, jet fuel demand rose. It jumped by 8.8%, showing signs of continued recovery in the air travel sector.

Diesel Prices Could Stay Volatile

For truckers, the drop in diesel prices offers short-term relief. But with inventories still below average, prices could shift quickly. Rising imports and strong refinery output are helping. Still, market watchers remain cautious.

Overall, diesel prices are down, but the fuel market remains tight. Truck drivers and fleet operators may want to keep a close watch on weekly changes.