Diesel Prices Drop at the End of 2025

Diesel Prices and Inventory Update: Year-End 2025 EIA Report

Diesel prices fell slightly during the last week of December. The national average reached about $3.50 per gallon, down a few cents from the week before. This drop followed a steady decline through the month as fuel supplies improved and demand softened during the holiday period.

Distillate stocks, which include diesel, increased by 5 million barrels. This rise in supply helped limit price pressure. Even though prices are still higher than at the start of the year, the increase in stocks supported a more stable market for drivers.

Crude Oil Stocks Tighten, but Refineries Stay Busy

While diesel supply increased, crude oil inventories moved in the opposite direction. Crude stocks fell by 1.9 million barrels, bringing national totals slightly below the five-year average for this time of year. Lower imports played a major role in the decline.

Even so, refineries ran at high levels. They operated at 94.7% capacity, which kept gasoline and diesel production strong. As a result, fuel products built up even while crude supplies dropped. This mix of factors helped keep diesel prices from rising.

Gasoline Prices Also Move Lower

Regular gasoline prices also decreased at the end of the year. The national average for gasoline fell to about $2.81 per gallon. This trend followed normal seasonal patterns, as holiday travel spikes are usually short-lived and winter demand is weaker.

Because gasoline and diesel come from the same refining process, steady gasoline output also supports diesel supply levels.

Diesel Prices by Region

Here is how diesel prices looked across major U.S. regions at the end of December:

• East Coast: About $3.47 per gallon, slightly lower than the previous week.
• New England: Around $3.65, with a small decline.
• Central Atlantic: Near $3.71, down a few cents.
• Lower Atlantic: About $3.39, also lower for the week.
• Midwest: Roughly $3.39, continuing a steady downward trend.
• Gulf Coast: Around $3.16, the lowest regional price in the country.
• Rocky Mountains: About $3.48, down slightly.
• West Coast: Near $4.32, still the highest in the nation, but down from earlier in the month.
• West Coast without California: About $3.74, also trending lower.

These regional changes show that most areas saw modest declines. The Gulf Coast continues to offer the lowest fuel prices due to proximity to major refineries and supply hubs.

What Lower Diesel Prices Mean for Drivers

Lower diesel prices help reduce operating costs for both truck drivers and fleets. Fuel is one of the biggest expenses in trucking, so even small decreases make a difference. Higher distillate inventories also lower the risk of sudden spikes during cold weather.

However, crude stocks remain tight. If imports stay low or refinery output slows in early 2026, pressure could return. Therefore, the fuel market may shift again in the coming weeks.

Looking Ahead

As 2026 begins, drivers should watch for:

• Changes in crude oil supply
• Winter weather impacts
• Refinery maintenance schedules
• Adjustments in fuel demand after the holidays

For now, diesel prices are moving in a favorable direction. Stable inventories and strong refinery activity are helping keep costs manageable for commercial drivers across the country.