Diesel Prices Fall Nationally but Rise Above $7 in California

Diesel Prices declined nationally during the week ending August 31, offering limited relief after a sharp increase one week earlier.

The U.S. average on-highway diesel price fell 5.3 cents to $5.599 per gallon, according to the latest data from the U.S. Energy Information Administration. The decrease followed a 19.8-cent jump during the previous week.

Despite the latest decline, the national average remained 14.5 cents higher than it was two weeks earlier. It was also $1.865 per gallon higher than during the comparable week in 2025.

Regional results were mixed. Prices declined across much of the eastern and central United States. Meanwhile, California, the broader West Coast, New England, and the Rocky Mountain region recorded increases.

National Diesel Prices Fall 5.3 Cents

The national average declined from $5.652 to $5.599 per gallon. That left Diesel Prices below the previous week’s level but well above the $5.454 average reported on August 17.

The latest decrease may provide some short-term relief for carriers after the previous week’s surge. However, the year-over-year difference remains significant.

At $1.865 more per gallon than one year ago, a 150-gallon purchase would cost about $279.75 more than the same amount of diesel during the comparable 2025 week. The 5.3-cent weekly decline would reduce the cost of that same purchase by only $7.95.

Actual costs vary based on tank size, location, fuel discounts, taxes, and other factors.

The EIA’s weekly fuel report includes all applicable taxes in its average retail prices. The agency released the latest data on September 1.

Gulf Coast Records Largest Regional Decline

The Gulf Coast reported the largest weekly decrease among the major regions. Its average fell 12.1 cents to $5.360 per gallon.

Even after that decline, the Gulf Coast price remained $1.993 higher than one year earlier. It was also $2.095 above the level reported two years ago.

The Lower Atlantic recorded the second-largest decrease. Diesel fell 7.4 cents to $5.276 per gallon. That was the lowest regional average in the latest report.

Midwest Diesel Prices declined 6.5 cents to $5.571. The East Coast average fell five cents to $5.448.

The Central Atlantic recorded only a small change. Its average declined two-tenths of a cent to $5.838 per gallon.

These regional averages do not represent the exact price at every truck stop. Prices can vary considerably within each region and along major freight corridors.

California Diesel Prices Climb to $7.218

California moved in the opposite direction from the national average. Diesel Prices in the state increased 17.8 cents to $7.218 per gallon.

That was the largest weekly increase in the EIA report. It followed a 25.5-cent increase during the previous week.

California diesel was $2.304 per gallon more expensive than one year ago and $2.469 higher than two years ago. It also cost $1.619 more per gallon than the national average.

At the latest average, 150 gallons of diesel would cost approximately $1,082.70 in California. The same amount at the national average would cost about $839.85—a difference of nearly $243.

The full West Coast average increased nine cents to $6.497 per gallon. Excluding California, the West Coast average rose 1.3 cents to $5.872.

The West Coast remained the country’s most expensive major region for diesel. It was the only regional average above $6 per gallon.

New England and Rocky Mountains Also Record Increases

New England Diesel Prices rose two cents to $5.736 per gallon. The average was $1.788 above the comparable 2025 level.

The Rocky Mountain region recorded a 1.8-cent increase, bringing its average to $5.555. That was $1.802 higher than one year earlier.

Although those increases were smaller than California’s, they show that the national decline was not shared across every part of the country.

Five of the nine regional categories in the EIA report recorded decreases. Four, including California as a separate category, reported increases.

Gasoline Prices Decline Slightly

The national average for regular gasoline fell 1.4 cents to $4.071 per gallon. It remained 89.4 cents higher than one year ago.

Gasoline results were also mixed by region. The Rocky Mountain average recorded the largest decrease, falling 9.3 cents to $4.266. The Midwest declined 8.7 cents to $3.847.

New England gasoline increased seven cents to $4.096. The West Coast average rose 5.9 cents to $5.206.

Although gasoline prices can affect broader household and business expenses, diesel remains the more direct concern for commercial trucking operations.

Higher Diesel Costs Continue to Affect Trucking

Fuel is one of the largest operating costs for motor carriers and owner-operators. Rapid price changes can affect cash flow, load selection, and the profitability of individual trips.

Fuel surcharges can help some carriers recover higher costs, but the level of protection varies by contract. Drivers operating in the spot market may not receive a separate surcharge. Instead, fuel expenses may be included in the total rate.

The latest national decline ends the immediate upward movement but does not erase the previous week’s increase. The average remains above its August 17 level and substantially higher than last year.

The next EIA update is scheduled for September 9 because of the Labor Day holiday. That report will show whether the national decline continues or whether regional increases begin affecting the broader average.