Diesel Prices Up as Inventories Hit New Lows

Diesel Prices: U.S. On-Highway Costs Rise to $3.72 per Gallon

National Diesel Prices Climb for the Week Ending October 27, 2025

The latest data from the U.S. Energy Information Administration (EIA) show that diesel prices climbed again across the country. For the week ending October 27, 2025, the national average reached $3.718 per gallon, an increase of nearly ten cents from the previous week. Prices are also up about 14 cents compared to the same week last year, showing steady upward movement as fall demand grows.

This increase comes at a time when distillate inventories continue to fall and refinery output remains below seasonal averages, putting added pressure on fuel costs for the trucking industry.

Why Diesel Prices Are Rising

Several factors are contributing to the recent rise in diesel prices. First, U.S. distillate fuel oil inventories fell to 112.2 million barrels for the week ending October 24, down by 3.4 million barrels from the week before. With supply tightening, markets have reacted quickly.

Second, refinery production of distillates averaged 4.5 million barrels per day, down by 134,000 barrels from the prior week. Less output means fewer gallons available for both trucking and heating demand.

Finally, crude oil prices have edged higher. The cost of West Texas Intermediate (WTI) crude rose to $62.27 per barrel, up nearly $4 week over week. Because crude accounts for most of the cost of a gallon of diesel, this rise directly affects retail prices.

Together, these changes signal a tightening fuel market heading into the colder months, when heating demand traditionally lifts diesel consumption.

Regional Diesel Prices Across the U.S.

Diesel prices vary widely by region, reflecting differences in refinery access, transportation costs, and state taxes.

According to the EIA’s October 29 report:

• East Coast (PADD 1): $3.723 per gallon
• New England: $3.851 per gallon
• Central Atlantic: $3.803 per gallon
• Lower Atlantic: $3.646 per gallon
• Midwest (PADD 2): $3.715 per gallon
• Gulf Coast (PADD 3): $3.350 per gallon — the lowest regional average
• Rocky Mountain (PADD 4): $3.747 per gallon
• West Coast (PADD 5): $4.485 per gallon
• California alone: $4.686 per gallon

These numbers show a significant regional gap. The Gulf Coast remains the cheapest area for diesel, thanks to its proximity to refineries and ports, while the West Coast—especially California—continues to post the highest prices in the nation.

Impact of Diesel Prices on Trucking

Rising diesel prices directly affect carriers, owner-operators, and shippers. Every cent increase adds cost pressure to the industry, especially for fleets running long-haul routes.

When fuel prices rise, many carriers implement fuel surcharges or adjust their freight rates to offset expenses. However, smaller operators may struggle to absorb rapid changes. With winter approaching, the combination of higher heating-oil demand and reduced refinery output could keep prices elevated through the end of the year.

At the same time, higher costs can tighten margins for brokers and shippers, influencing freight rate negotiations across the spot and contract markets.

What’s Next for Diesel Prices

According to EIA data, current market trends suggest that diesel prices may remain firm through November. If crude oil continues to rise or if refinery output falls further, additional price increases are possible.

Key factors to watch include:

• Future EIA weekly petroleum status reports
• Refinery maintenance schedules or unplanned outages
• Global crude oil price changes
• Shifts in seasonal heating demand

Monitoring these indicators will help fleets and independent drivers plan for potential fuel cost fluctuations.

Conclusion

The latest EIA report confirms that diesel prices have climbed to $3.72 per gallon nationwide. Reduced inventories, lower refinery output, and higher crude oil prices are driving this increase. Regional differences remain wide, with the West Coast leading at more than $4.48 per gallon and the Gulf Coast staying below $3.40.

As the trucking industry heads into winter, staying informed on fuel trends will be critical for managing budgets, planning routes, and adjusting freight rates in an increasingly tight energy market.